Kitobni o'qish: «Team Rules: Managing Change in the Digital Era»

Translated and edited by Alpina PRO in cooperation with Frankie Edwards

Design by Tatevik Sarkisyan

© 2023 by O. Nabok

© 2023 by Alpina PRO LLC

© Electronic edition. Alpina Digital LLC, 2024

* * *

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INTRODUCTION

Would you like to become the best version of yourself in management and master the techniques of creating a team capable of acting as a balanced unit, complementing each other, and approaching changes and innovations with a positive mindset and enthusiasm? Do you desire a team that takes responsibility for the organization's development, refines existing processes, and maintains a strong focus on results? If so, “Team Rules: Managing Change in the Digital Era” is exactly what you need. The book explores a modern leadership model and 10 change management strategies that have proven successful in today’s digital world. By leveraging these strategies, you can build a team of like-minded individuals capable of:

• Efficiently organizing and autonomously improving processes;

• Anticipating and promptly addressing client expectations with suitable changes;

• Enhancing their performance through digital tools, by unlocking their inner potential and scaling up best practices;

• Striving for maximum results, while avoiding bureaucratic processes and toxic reactions;

• Investing personal resources such as effort, time and energy to achieve a shared result.

An important aspect highlighted in this book is the provision of practical tools for engaging employees in the implementation of necessary changes by fostering a corporate culture of innovation and creating an environment that not only encourages self-learning and the development of new competencies but also drives team members to improve the organization's performance and adapt to a dynamic (or turbulent) environment by generating new solutions.

You have in your possession a comprehensive desktop toolkit for a successful leader in the digital era, complete with abstracts from expert articles, research papers, and real-life stories. Each chapter contains genuine cases supported by analysis and insight from experts, equipping you with 80 % practical and 20 % theoretical knowledge that is essential for achieving a systemic level of expertise in change management, as well as organizational, team, and personal development.

This book will undoubtedly prove valuable to experienced leaders who want to hone their leadership skills in an era of constant change, as well as to those who have recently embarked on their career journey. It will also be of interest to middle managers, heads of business units, and HR managers seeking to nourish their management skills or transition into the role of business partners.

01. STRATEGIC DIGITAL MANAGEMENT

Chapter 1. Transformational leadership in a new reality. Changing the evolution of leadership competencies

Welcome to the world of rapid change! The concept of “stability” is no longer applicable to organizational management. Instead, the key priorities of transformational leadership involve the ongoing quest for growth opportunities to unleash the organization's potential, boost team productivity, and ensure the sustainability of services while implementing new processes and systems.

The success of modern organizations hinges on several key factors, including operational change management, innovative strategies, a corporate culture that embraces innovation and digital performance boosters, as well as the transformation of models and processes through team engagement. Notably, client-centric systems that address the requirements of both external clients (consumers) and internal ones (employees, partners, and all stakeholders of the organization) take center stage.

“

SERGEY CHUMAK, International Expert on Business Transformation and Strategy, Head of the Strategy Committee of the Digital Experts Association (DEA):

– Digital transformation is undoubtedly rooted in technology, but its primary focus is always on the client: creating value for the client involves a creative experiment that inherently carries an innovation risk. An update to organizational design is imperative, as it serves to stimulate creativity.

One of the most significant challenges encountered in the process of digital transformation is cultural transformation. The question that continues to puzzle many is how to motivate managers to be creative, responsible, and successful entrepreneurs within this context.

”

What about management?

Today, volatility, dynamism, and frequently the absence of clear benchmarks have become the new norm. While it may be described as harsh, it has acted as a catalyst for the next phase of evolution in management models.

Once upon a time, we transitioned from a division of labor to centralized management with a strict hierarchy. Nowadays, we are moving towards an innovative culture within organizations that have shorter structures and a minimal number of management layers where everyone has the potential to assume a leadership role, particularly within specific tasks and projects and where motivation is not only about dangling a carrot in front of employees but also ambitious goals, sustainable collaboration and smart competition (see Figure 1).

At the forefront is a focus on seeking common interests of clients, employees, partners, and all stakeholders to create a sustainable organizational ecosystem and unleash its potential through the integration of digital tools, thereby improving interaction efficiency. Even the most flawless strategy will fail if it lacks the support of the team. In this case, the dynamic and simultaneous introduction of innovations is replaced by a more rigid adherence to guidelines.

The team, much like a living organism, will either adapt to changes (ideally initiating them) or reject them as unnecessary while maintaining the existing status quo and a consensus that is currently favorable. The trend of involving employees, clients and partners in the development and enhancement of a strategy becomes a natural norm and paves the way for its successful implementation.

NEW ERA SIGNIFIES NEW CHALLENGES

The paradigm of important leadership qualities is continually evolving and broadening. Today, the key is the skill of successfully implementing changes and modeling the future together with the team, thereby giving rise to the emergence of transformational or resonant leadership.

What is a transformational or resonant leader? It is an individual who knows how to inspire employees, helping them to make informed choices, and guiding their development based on values and narratives that are important for the team and the organization. He or she leads by example, actively pursues positive change, fosters an environment conducive to the generation of ideas, is open to experimentation, and acknowledges his or her mistakes when they occur. At the same time, transformational leadership does not negate the ability to manage based on strategic priorities and high-quality real-time data, nor the capacity to swiftly adapt the organization's ecosystem as needed.

A dreamer and an analyst, a financier and a visionary who anticipates trends, a competent manager and a mentor – mastering all these roles is not something that can be accomplished overnight.

This is where the strength of leadership evolution becomes evident (see Figure 2), transforming into:

• multi-level, which in this context signifies a phased evolution through several levels or growth points each of which is characterized by the development of new competencies, behavioral role models, and managerial capabilities; present at all levels of the organizational structure;

• team-based, here we are talking about collaborative efforts, the avoidance of centralizing power in the hands of one individual, and sharing areas of responsibility and tasks. This approach considers strengths over statuses or positions and is supported by cross-functional and project teams.

This realization underscores that potential exists within everyone. The question is how to unleash it. What skills should be developed to become a manager who does not merely issue instructions but instead leads toward collaborative and sustainable development, helping to overcome challenges?

TRAITS OF A SUCCESSFUL LEADER IN AN ERA OF CHANGE

1. Ecosystem Thinking

This skill means having social sensitivity and the ability to manage relationships at different levels, including within large systems.

A company is a living organism, an ecosystem, where each element (employees, partners, customers, contractors, society, state) exerts an influence on the direction and performance of the system as a whole (see Figure 3).

To gain insight into not just individual shortcomings but the whole picture, one must be an observer with the capacity to take a broader perspective, thinking proactively, and understanding how a combination of different factors shapes the ultimate outcome.

When developing products, adopting the ecosystem approach serves as a significant gravitational force in the market which not only changes the trajectories of competitors, but also compels them to reevaluate their strategies.

Here are some notable examples of ecosystems. Sberbank and Yandex are collaborating to provide a wider range of services within a unified environment – an ecosystem. This marks a significant technological breakthrough¹.

The CEO of Kaspi Bank has also started to create an ecosystem. In their ecosystem, customers can manage finances, make online purchases, compare prices for specific items, participate in loyalty programs, among other options. The primary focus of the company is on enhancing the customer experience with the product, which is reflected in their technology-driven approach: they have interviewed 30,000 consumers, to gather their feedback and needs, and then proceeded to create a product that caters to these needs. All the services are interconnected, complementing each other, and designed around the interests of both customers and partners in the ecosystem. If one evolves, the other follows suit².

The Mail.ru Group ecosystem consists of a wide range of offerings, including payment services, a unified identification system (single ID), offline digitization programs, media services, and game libraries. All of these products together form a unified infrastructure where users can access an array of services and find virtually anything they might need³.

2. Stage of Charge (Energy Potential)

The concept of “vitality quotient” is often associated with activeness but there is a distinct different between the two: activeness refers to external dynamics, while VQ represents an internal resource that stimulates these external dynamics.

The state of charge (the intensity of the desire to live) serves as a vital asset for leaders as it empowers them to overcome resistance, provides the strength to inspire and engage others, and kindles people's hearts with ideas and goals. It often goes hand in hand with charisma, which has no clear or uniform definition but includes the charm, self-confidence, and the persuasive power that naturally emanates from energetically charged leaders.

The leaders who are best remembered are not the ones who never made mistakes but those who actively and stubbornly pursued their goals. Such leaders share their passion and love for the organization's mission with their team, through sincere values, acting as role models, and implementing processes that embody and support the organization's DNA.

I remember very well my onboarding as HR Director for Russia and the CIS in a corporation that was engaged in a global restaurant and other service businesses around the world. As per their onboarding plan, I rose through the ranks from a restaurant worker to a manager of several divisions in different cities in one month.

My scope included studying the operational business, getting to know the team, auditing HR processes, and formulating an HR strategy. Usually, newcomers meet and communicate with colleagues in office meeting rooms. The uniqueness of the onboarding approach proposed to me was to work on actual restaurant sites. This hands-on approach helped me to learn the minutiae of the restaurant business, establish bonds with the team, identify all the growth points to implement the HR management policy, and develop an understanding of the organization's DNA.

The company placed a strong emphasis on maintaining a high level of development energy and continuously improving processes: an innovation forum, the exchange of best practices, and the pursuit of new types of services all contributed to this commitment to improvement.

This 'state of charge' produces very good results when combined with the ability to inspire, motivate, and create a culture of innovation – alongside tools to maintain team engagement and drive, and the capability to sustain and revitalize the resourceful state of both oneself and the team.

3. Focus on a culture of shared values and a sustainable corporate environment

Members of teams and participants in cross-functional projects not only can, but must differ in age, experience, skills, and talents. When they collaborate, they serve to complement each other through their diverse competencies and foster an exchange of energy, which, like static electricity, tends to accumulate and electrify the internal potential of the organization, thereby enhancing its performance. This embodies the essence of teamwork. Our collective strength leads to the creation of new value.

A constructive attitude and a desire to reach an agreement enable employees to search for common ground, find compromises, and establish common goals. Gradually, team members align their perspectives and improve the organization's operations. This process fosters the development of a culture of shared values, which not only enhances and accelerates the organization's potential but also extends beyond team morale, promoting a culture of innovation.

The leader’s role is to create the conditions and provide a background for such collaboration. This entails defining tasks with clarity and precision, accompanied by transparent monitoring. The leader should ensure that each participant in the process understands their role and the cause-and-effect relationship of their actions. It is essential to establish direct lines of communication with every level of the organization, providing a platform for everyone to voice their concerns and ideas. The leader should also create a database of knowledge, best practices, and available resources while optimizing processes and eliminating factors that drain the time and energy that are required for productive work.

The mission, discourses, and shared values play an important role. Genuine ambassadors for the company are those employees who not only understand but also identify with the company's values. A person is more inclined to perform tasks that align with their core life principles and interests (the ones that are genuinely held, not just those that are only documented on paper).

Apart from external marketing targeting clients, there's also an internal aspect focused on the team – internal communications. The mission, goals, and values integrated into the processes make up the framework of the organization. The organizational culture, along with its various elements, sets the tone for both offline and online environments within the organization, and this is further reinforced by the support of its leaders.

When I work with teams to formulate or revise their missions and values, every single time we start by posing two fundamental questions “Why are we doing this?” and “How will the organization benefit from it?”

Any mission, without a deep understanding of its semantic meaning, remains nothing more than an attractive slogan. Team members truly feel the power of words when they believe in the sincerity and value of the mission's objectives.

Projects created solely to “fill a website” lack genuine benefits. However, when a shared discourse permeates the corporate environment, it is reflected in the processes and all types of interaction among team members and with clients.

4. Emotional Intellect

Today, it is difficult for a leader to be effective without strong emotional intelligence, which implies empathy (being sensitive to other people's feelings), awareness, and emotional control (both for oneself and in managing others' emotions).

Loud emotional disputes, toxic relationships, the inability to give constructive feedback and withdraw from conflictual situations, as well as sub-optimal processes and lengthy meetings with many participants sap the strength of a team. An environment filled with negativity diverts employees' focus from their tasks, effectively disarming them. By contrast, fostering constructive communication, attention, and sensitivity to the interests of various parties involved, combined with clear tasks, their value to the employee, and a healthy working atmosphere give rise to loyalty, motivation and boost productivity.

Positive emotions uplift your mood and influence your perspective on situations: problems are perceived as fresh challenges for which optimal solutions must be found. In other words, the focus of employees shifts from assigning blame to seeking resolutions. Why waste valuable time on anything else?

Emotional intelligence can manage moods for the benefit of all stakeholders, which is especially important in the era of ecosystems. This is not about manipulation, or being someone else's caretaker, but rather, it is about fostering healthy relationships and taking into account the repercussions of decisions on various stakeholders, all while avoiding extremes.

When working with managers with different styles, I see a direct connection between the thought patterns of leaders and the corporate culture.

The more they are open to new perspectives, eager to understand the state of affairs, and listen to their team members, the more the environment is receptive to innovation, the clearer the processes, the better the results, and the more effective the interactions.

Such leaders manage relationships primarily “with themselves,” engage in comprehensive self-development, adopt a broader perspective, view situations as observers, and are not afraid to employ self-irony when trying new approaches. This ensures enduring relationships within the team.

One gains significant insights by simply observing and analyzing the staff turnover within an organization.

5. Lifelong Learning and Coaching Elements in Team Relationships

The principle of “one degree for life,” which worked perfectly in the 20th century, is no longer relevant. In order to adapt to the ever-evolving challenges presented by the external environment, you need to continuously learn throughout your life. This ideology is known as lifelong learning⁴.

It is essential to develop not only hard skills, which are the skills required to perform professional tasks, such as language proficiency for a linguist or coding for an IT specialist, but also flexible, universal skills, often referred to as soft skills, such as the capacity to work in a team, plan and set goals, adapt to new conditions, as well as the so-called meta-skills, such as creativity, authenticity, and self-awareness.

This is a continuous process characterized by each employee delving into their own self, seeking personal purpose, breaking down the barriers that restrict beliefs, and strengthening the collective potential of the entire team. Henceforth, every new challenge becomes an opportunity to tap into a resource.

Let us add the following to the above:

• abandoning the “I know everything” mindset: the willingness to learn from the experience and knowledge of any employee, regardless of their status;

• rejecting established patterns in favor of perceiving with open eyes, where unconventional approaches are not automatically deemed incorrect;

• willingness to admit mistakes and work together to rectify them.

This is how attentive and versatile leaders emerge and qualify as mentors.

6. Change Management and innovation implementation

An effective leader is an entrepreneur who evaluates each task in terms of the future outcome. Moreover, it is important for him or her to not only think proactively but also to perceive changes as a permanent growth factor.

The team will actively engage if the leader maintains a culture of innovation that aligns with the core principles of the organization and the people within it if the leader is open to experiments and improvements and actively facilitates their implementation. The key concepts here are speed and productivity. The leader must always keep abreast and assist in the swift implementation of changes in processes and operating models. To achieve this, the leader should receive dynamic updates to understand the overall situation and make well-informed decisions in the moment. This involves having readily available dynamic metrics (key performance indicators or KPIs) that accurately reflect current circumstances, as well as scenario testing methods. We will discuss these in later chapters.

The main point to bear in mind is that when we make changes to processes, there is an additional burden on the team in terms of applying and mastering new technologies. It is important to undergo transformation while simultaneously increasing overall productivity.

The leader's responsibility is to help the team in streamlining their efforts, building a meaningful path, choosing priority areas and introducing digital tools that will give the organization the greatest immediate impact.

7. Digital skills & the ability to work with data

In addition to an open-minded approach, innovation also requires new digital competencies (project management through a CRM⁵, proficiency in handling clouds and understanding intelligent systems, and so on). This is where the ability to seamlessly integrate the organization’s ecosystem into a digital environment and flexibly manage processes using high-precision algorithms become paramount. It involves optimizing time-consuming operations and strategic planning. Tools aid in the creation of digital twins, testing scenarios, prioritization, and real-time management based on reliable analytics.

“

SERGEY CHUMAK, International Expert on Business Transformation and Strategy, Head of the Strategy Committee of DEA:

– Until recently, many believed that “digital” was something on the distant horizon, beyond our reach. Today we recognize that every business must embrace this trend and address the question “How can I turn new technologies into a tool for creating value for customers and shareholders?” To embark on a journey of digital transformation, it is advisable to create a manageable plan for quick wins and supplement your own competencies by collaborating with more experienced partners.

”

Welcome to the world of digital management, where the pioneers are those who embrace the new, exhibit organizational flexibility, have a commitment to ongoing development alongside the team, and display a keen awareness of processes, team dynamics, and innovations.

Chapter 2. Thinking innovatively, tapping into hidden resources, and scaling from within

The continuous development of employees has always been, and remains, essential for the success and growth of the organization. Yet the world is evolving at a rapid pace, pushing us to keep up with it and reducing the time available for response and adaptation.

Consequently, operational integration of changes, sustainable development, and the recognition of transformation as an intrinsic and integral aspect of the organization's survival now take center stage.

The leader faces two major challenges.

1. Preparing the team and organization for transformation to enable new processes and improvements. To prevent potential resistance of employees to innovation, it is important to lay the groundwork in advance: set goals, communicate the purpose, strategize on motivation, involve the team, ensure they have access to the necessary resources.

2. Managing and facilitating changes (initiatives, rhythm, higher productivity) during the introduction of innovations. What are the primary roadblocks?

• A strategy is imposed from above (leaders) and outside (consultants), but units and employees fail to see its strengths and do not share the management's vision.

• There is no clear or transparent monitoring of the effectiveness of implemented innovation, and no objective metrics or KPIs that can be used to evaluate the effectiveness.

• There is neither reactive collaboration nor sync between units. Each new process requires a startup phase; failures occur at the interfaces of these processes.

• Employees lack the competencies needed to drive change. Inadequate and unsystematic training fails to provide a clear understanding of the tasks and methods required for their execution.

• Traditional organizational design does not support innovation.

• Any additional workload during the implementation stage and any doubts born from the fear of change and the feeling of uncertainty can result in resistance from the team.

At the same time, in addition to strategic priorities and planning, important drivers of growth include the choice of the most effective digital tools and taking into account the opinions of key stakeholders (teams, partners, customers, etc.) when implementing change. This approach enables companies to develop and expand not only through external expansion, such as opening new offices, franchises, licenses and distribution channels, but also through internal optimization, uncovering hidden resources and eliminating inefficient processes and any impediments to progress, all while striving for a more environmentally sustainable, energy-efficient, and secure path forward.

In an age of digitalization and rapid change, this concept is giving rise to numerous change management trends.

Chapter 3. Trends in change management within a digital environment

CREATING A TRANSFORMATION STRATEGY AND PLAN WITH THE TEAM, UNITING AROUND SHARED VALUES AND DISCOURSES

A sustainable and effective way to boost team performance in an era of change is to involve the team in strategy development, management, and the transformation process.

Megafon⁶ has its own technology sandbox, which serves as a platform for testing hypotheses and innovative solutions, not only for employees but also for supporting pilot projects and startups. Its founders firmly believe that all employees, from a consultant to a senior executive, should adopt an entrepreneurial mindset. This gives a deeper understanding of the long-term consequences of their decisions and helps develop processes that align personal and corporate interests.

While the leader evaluates the situation on a global scale, the team observes it from within. This means that employees are better positioned to identify local problem areas, provide an accurate depiction of ongoing events, obtain key insights, and propose unconventional solutions to optimize workflow efficiency.

The joint development of ideas and strategic approaches paves the way for growth and development rooted in shared values and discourses: they are verbalized and translated into corporate codes and role models that can be adopted company-wide, thereby revealing its internal potential and demonstrating approaches for effective collaboration.

CORPORATE CULTURE AS A DRIVER OF INNOVATION

Innovations do not solely originate from external sources. They can also be born within the organization if the leader:

• Unleashes the team's potential;

• Cultivates an environment conducive to insights and fresh ideas;

• Communicates with the team to convey the importance, value, and benefits of changes;

• Introduces systemic mechanisms for collecting and analyzing ideas.

Within a self-developing team operating with a streamlined management structure, something akin to a collective mind emerges: draw energy from each other, and this energy doesn't dissipate into the void but accumulates, much like static electricity. This energy subsequently results in the generation of innovative and groundbreaking ideas (see Figure 4).

DIGITALIZATION AND IT AS ACTIVE ELEMENTS OF MANAGEMENT, CORPORATE ENVIRONMENT, AND BUSINESS MODEL

Nowadays, innovation is often associated with automation and digitalization. Successful companies, in approximately 90 % of cases, base their management decisions on data. This approach facilitates the adaptation to continuous changes and expedites the implementation of digital tools rather than impeding it.

Using advanced analytics for marketing purposes is increasingly becoming the standard practice.

“

VERONIKA GIMENEZ, Executive Director of DEA:

– Technology has changed the conventional behavioral patterns of both marketers and managers, and the recent pandemic has further consolidated this process.

Marketers no longer need to ask clients what they want. Thanks to search queries and other automated tools, we already know what products and services the client is seeking, the music they listen to, and their clothing preferences. Today, even the simplest A/B tests can easily identify real demand, rendering traditional focus groups unnecessary.

Digitalization and automation tools assess the demand for a product without the need to produce it beforehand, and, using the data acquired, businesses can make informed decisions about the product's fate: whether to retain the concept as is or modify it to raise its value in the eyes of consumers, thereby ensuring that it meets the desired sales targets.

”

The successful implementation of digital technologies and tools is not just changing the internal communication system; it is reshaping the entire business model. Technologies are woven into the organization's ecosystem, giving rise to a fresh corporate culture centered around data management.

RETHINKING APPROACHES TO ORGANIZATIONAL DESIGN

The traditional organizational structure is evolving into more flexible, simplified, or decentralized systems. This is primarily because, in terms of innovation speed, the usual hierarchical management models with two-way communication (top-down, bottom-up) are inferior to more agile structures built on self-governance and/or cooperation, featuring multidirectional communications among all team members.

The evolution of the leadership model is giving rise to a new kind of cross-functional team empowered to manage products and projects based on competencies. It also increases opportunities for a wide range of employees to take initiatives and make decisions, and it places emphasis on meta-competencies and internal communication within the organization.

The company is perceived as a living organism with its distinct corporate DNA, making it inherently unique. It does not conform to any universal management model, and similar trends can be observed in many Russian companies.

Sberbank practices self-governance days, during which any regular employee can experience a leadership role⁷. Proactive employees are invited to speak at specialized conferences and accelerators for innovative business ideas are being introduced for employees⁸.

Ozon hosts a bi-monthly all-hands open mic event where both top managers and individual contributors come together to discuss news, exchange ideas, share results, and answer questions⁹. Each meeting is followed with feedback on the content's usefulness, clarity, and the overall comfort of the event. This is done to increase the effectiveness of training programs and instill a sense of responsibility within the team for personal and general improvement¹⁰.

Many organizations delegate assignments to cross-functional project teams as a means of enhancing internal entrepreneurship and to pilot ideas.

TRANSFORMATION MANAGEMENT AND DYNAMIC CHANGE EFFICIENCY METRICS

Preventing potential resistance to change is much easier than fighting it. The adaptation of both the team and the organization to transformational processes is achieved through the evolution of management approaches.

Methods based on transformation efficiency metrics are becoming increasing popular. These methods include:

• setting measurable and transparent goals;

• short planning cycles (sprints) to complement long-term goals (breaking the large task into smaller, manageable pieces);

• inter-team synchronization (subdivisions constant communication, awareness of joint tasks, and can assume responsibility as needed);

• a comprehensive assessment of the results (by team members, the manager, employees from various departments, and other members within the organization’s ecosystem);

• transparent monitoring that establishes a clear connection between actions and results;

• a competitive element resulting from the transparency of the monitoring.

Approaches that were previously used primarily by IT companies are proving to be effective in a variety of domains. However, these organizational models require updated analytics that:

• respond quickly to changes within the organization and in the external environment;

• include prioritized qualitative and quantitative indicators that are aligned with the objectives defined by stakeholders;

• enable the evaluation of indicators from multiple perspectives, within a single process, or at the intersection of several processes, while taking into account different segments and priorities. This assessment should be from both the organization's point of view and its external communications.

As a result, dynamic performance metrics are reconfigured to align with new management models, serving as catalysts for change. They draw attention towards the processes that require reconsideration and optimization, and unveil immediate potential and high-priority areas for growth.

DIGITAL HR¹¹ AND IMPROVING TEAM PRODUCTIVITY IN A DIGITAL ENVIRONMENT

Previously, the objectives of corporate digitalization primarily revolved around processes such as setting up communication systems and systematizing data. Today, essential elements of digitalization encompass the development of a digital culture and the creation of a digital employee profile, teaching the employee relevant digital skills that leverage technologies and improve the overall quality of their work.

From the employer's perspective, some of the most relevant competencies for employees include data processing and analysis, designing production systems, coding, and application development.

Not only does digital literacy shape the behavioral patterns required to drive change, but it also equips an organization to address the critical challenge of transformation with improved performance.

INTERNAL MARKETING: INCREASING EMPLOYEES’ LOYALTY AND BUILDING A TEAM OF LIKE-MINDED PEOPLE

Employees are regarded as the primary target audience for the organization along with clients and prospects. The goal is the same: to generate interest in the brand and increase involvement and a sense of ownership.

The principal methods are:

• identifying shared values, discourses, and beliefs that give rise to a team of like-minded individuals who are engaged, loyal, and move in the same direction;

• strengthening the competitive advantages and attractiveness of the brand as an employer;

• moving away from formalism and establishing new, convenient methods for organizing both physical and digital workspaces;

• gamification of the learning and development process, often referred to as edutainment which is a blend of education and entertainment;

• a coaching management style that emphasizes openness, mutual trust, mentoring, developing a growth-oriented atmosphere, and maintaining positive attitudes (for instance, focusing on finding solutions to problems rather than apportioning blame).

At Yota,¹² the workspace is closely linked to Russian culture. The meeting rooms are named after great figures: Pushkin, Tsiolkovsky, Kandinsky, etc. The relaxation zone is an interactive space filled with art objects and youth culture items: bicycles, longboards, and skateboards. You can ride around the office, dine at a table, play on the console, or practice boxing with a mannequin in order to relax and unwind.

The office ambiance is an integral aspect of the organization's internal marketing. Now, when many people have switched to a hybrid work format, there is an opportunity not only to reduce office costs but also to transform the workspace for new purposes. This adaptation may include incorporating co-working spaces, comfortable meeting rooms, important communication features in communal areas, and digital technologies for the streamlined monitoring of KPIs and facilitating online interaction.

LIFELONG LEARNING (RE-SKILLING) AND META-COMPETENCIES

Today, the competency framework is relevant for the entire team as a whole, rather than being limited to just the leader.

What is required for success in an era of change? Firstly, the acquisition of new digital competencies: proficiency in smart gadgets, communication skills, a grasp of business intelligence (BI), and generating reports using digital channels and tools (cloud, CRM, etc.). Secondly, there are what we refer to as meta-competencies: sociability, proactivity, the power to persuade, and other skills related to self-organization, teamwork, etc. We are talking about skills that “go beyond the limits,” those that form the foundation for self-adaptation, behavior adjustment, and personal transformation. They enable individuals to take a systematic and comprehensive approach to learning by pushing the boundaries of their capabilities.

Increasingly often we see coaching as part of employee development plans aimed at altering personal attributes and challenging constraining beliefs. HR specialists leave this responsibility to professionals, providing colleagues with a broader perspective and a more comprehensive approach to personal growth. There is a rationale to this: by removing limiting attitudes, a person becomes more open and gains confidence, which subsequently has a positive impact on all aspects of their life. This is particularly advantageous for professionals who have transitioned to team management roles. Despite having high-quality professional expertise, they may encounter challenges in mastering fundamental managerial competencies like delegation, persuasion, time management, and providing constructive feedback, among others.

With the above processes underpinning the changes, the very approach to self-improvement and advanced training is undergoing a transformation. The concept of lifelong learning – continuous learning throughout one's life – is becoming increasingly popular.

TEAM HEALTH AND PREVENTING EMPLOYEE BURNOUT

Survey results show that in organizations that prioritize this aspect, labor productivity is 20 % higher. According to the WHO (World Health Organization) data, healthcare reduces the time spent on vacation and sick leave by 27 % and reduces the cost of health services by 26 %¹³.

These activities can vary significantly: from group yoga classes, bike rides, and wellness-oriented menus in corporate canteens to medical facilities and extended insurance coverage. Some organizations have even introduced cafeteria benefit plans that allow employees to select from a “menu” of options that align with their interests and motivations, such as medical insurance, fitness, food, or travel expense compensation. This represents a positive trend since tasks and priorities tend to evolve with age.

The resourcefulness of the team also depends on constructive communication and well-established processes that directly affect the long-term performance and outcomes of the organization.

Russian Railways, together with corporate members of the Russian Union of Industrialists and Entrepreneurs, offers an annual medical examination program for employees. Additionally, the company has also set up Health 360, a public organization that implements leading corporate practices from Russia and globally. These efforts are aimed at safeguarding the health of the workforce¹⁴.

Many organizations promote healthy and active lifestyles through discounts on fitness classes, participating in affiliate programs, and organizing marathons and bike rides. These measures not only contribute to a positive attitude, and nurture collaboration, but also strengthen teams by making the employer brand more appealing.

FOCUS ON COLLABORATIVE SUSTAINABLE DEVELOPMENT WITHIN THE ECOSYSTEM, SYNERGY, AND COLLABORATION OF BRANDS

The sustainable development of the entire ecosystem ultimately depends on the performance of each member of the organization. This is another demonstration of the company being viewed as a living organism. It signifies a shift towards long-term thinking, taking into consideration not only market trends but also environmental conditions, societal benefits, and universal human values.

Leroy Merlin's¹⁵ mission aligns with societal interests. According to its mission, in addition to improving housing conditions, the company also improves the quality of life, and promotes responsible consumption and environmentally friendly solutions for home renovation and improvements.

Investing in the future is more effective than reaping the immediate benefits of strategies that prioritize current profits. This approach guarantees the company's stable growth in future turbulent environments.

An increasing number of projects are emerging on the market based on the principles of cooperation and collaboration, such as delivery services like Yandex.Delivery or Delivery Club, which have brought together a huge number of restaurants and food chains on their platforms. These projects should also include marketplaces such as Ozon, Yandex.Market, SberMegaMarket, and others, where you can purchase a wide range of products, from budget items to luxury goods. Digital subscriptions and online entertainment services are also following this trend. They are no longer limited to movies and music, but now include offerings like internet, TV, and mobile communication packages. The market is evolving into an ecosystem with interconnected elements that ensure mutual growth and development.

The future is already here, and it is primarily about people. Technology serves as a tool, albeit a significant one. Therefore, it is important to align with the organization's discourses and strategy, understand the need to transform multiple aspects of business, and select the appropriate digital tools that deliver tangible improvements and align with the defined objectives.

This is not a digital race, but a deliberate decision with an emphasis on qualitative changes and team engagement: without the team’s participation, even the most brilliant ideas and strategies may remain unimplemented or merely exist in the form of impressive presentations.

For all the importance of digitalization, the thread of human communication, relationships within the organization and ecosystem, and the unification of people around values remain valuable (see Figure 5).

02. 10 STRATEGIES FOR A SUCCESSFUL MANAGER IN A DIGITAL ENVIRONMENT

Chapter 1. Involving the team in strategy development

RETHINKING EXPERIENCE AND APPROACHES

In times of turbulence, the strategic development process speeds up, with shorter planning periods. It is difficult to predict the availability of certain resources and possible limitations. Decisions must be made very quickly because while we search for the ideal way to implement an idea, it may already be outdated or achieved by competitors.

For example, we initially hoped to return to traditional office work after the pandemic. Now the hybrid work format and telecommuting are here to stay, and new challenges continue to arise that require a reevaluation of business forecasts and strategies for the coming years.

In the face of an unstable external environment and numerous diverse factors influencing the organization, flexible strategic development systems are proven to be effective.

FIVE PRINCIPLES OF STRATEGIC FLEXIBILITY

1. Speed is more important than striving for perfection. In an age of high dynamism, opportunities come and go quickly. Responding to, launching, and configuring new tools often entails sacrificing a rigorous approach. For example, during the pandemic, while most film studios were waiting for cinemas to reopen to continue their screenings, Huanxi switched to Bytedance services that included TikTok¹⁶. This decision, despite being less than perfect, resulted in more than 600 million views and gained immense popularity.

2. Adaptability and rolling planning are more effective than traditional planning. Strategic planning is often seen as a sequence of tasks that are either designed in the present or planned for the future to reach a specific goal. The solutions integrated into the plans are designed and approved well in advance, spanning multiple years. However, during the frequent turning points that the 21st century presents, rigidly sticking to these predetermined scripts can act as an anchor, hindering progress. In contrast, being open to adapting and even abandoning a strategy when necessary can provide greater benefits, demonstrating flexibility and maneuverability.

“

ELENA GLUKHOVA, DEA expert, Doctor of Business Administration, business consultant:

– Imagine a yacht sailing with a set course. While it aims to reach a specific destination, the captain must continuously make adjustments to its trajectory based on factors like wind and unforeseen obstacles. The course and destination remain the primary focus, but deviations are essential to avoid potential accidents on the way to the goal.

Similarly, an organization can change its approaches to strategy development and planning, taking into account trends and internal developments. For example, it can maintain a flexible planning of three years, 12 months, or 12 weeks without rigidly adhering to the calendar year, making adjustments to timing as needed.

The practice of adhering to the traditional calendar grid (January 1 to December 31) is replaced with rolling planning, when a plan is formulated at the end of January for February 1 through January 31, and so forth, with actual figures versus planned figures and factor analysis and subject to all the adjustments in events, trends, and tendencies that might occur during this time. This approach offers the advantage of allowing organizations to maintain a trajectory while making more frequent and smaller adjustments, or larger ones in response to unexpected developments or force majeure situations.

It is important to establish this practice as a habit, which involves continuously monitoring the overall course and its deviations, and then translating them into weekly and monthly tasks.

”

3. A self-organizing team responds faster to extreme changes compared to a hierarchical system. In situations where multiple layers of management are involved in defining tasks and objectives, the time it takes for the individual executing the task to understand and act upon it can be prolonged. In a short management structure where teams are driven by personal interests and motivation rather than external rewards or punishments, the speed of reaction is significantly higher.

When a team is empowered and operates without rigid constraints and excessive formalism, it becomes more receptive to rapid changes. Then, even employees at lower levels can take on the role of change initiators. Within this flexible framework, innovation and transformation become a natural element of corporate life, spreading faster across departments and gaining more support. In this case, the leader does not always have to be the initiator of change, as innovative impulses can originate from the team itself.

4. A balanced motivation system that considers the interests of employees and key stakeholders is more effective than looking for someone to blame for mistakes. The organization develops as a healthy organism, in which all functions work together, and energy is not wasted on fruitless blame games after a failure. Mistakes serve as opportunities for growth and are discussed in the context of results-oriented changes and what could have been done differently to avoid similar issues in the future.

“

ELENA GLUKHOVA, DEA expert, Doctor of Business Administration, business consultant:

– We need a balanced system of motivation for specific tasks that ensures timely completion. Take, for example, a scenario where a department head is required to track and process timesheets, but constantly puts it off. Traditional incentives for task completion do not serve as effective motivators, there is a lack of personal engagement in tracking and completing documentation, and the individual is unable to self-regulate.

On the other hand, debriefing can work as a factor analysis: what tasks were planned and for what time frame, but were not completed for whatever reason. This transition shifts the focus from “Who is to blame?” to “What should we do?” It is essential to figure out how to prevent the recurrence of mistakes and ensure that tasks are accomplished correctly and within the designated time frame.

Furthermore, instead of shifting responsibility to subordinates, it is necessary to foster motivation that aims at achieving a collective outcome, when the head of a unit or team has a sense of duty not only towards higher authorities but also towards their subordinates. Such motivation should be driven by the aspiration for progress rather than the fear of punishment.

As for an employee who regularly lets the team down, undermines the team's efforts, and reduces the overall performance, despite posessing the requisite knowledge and competencies along with access to necessary resources, it becomes essential for both the leader and other team members to take a firm stance.

The key is to avoid letting the situation stagnate, as this won't resolve the problem but instead make it worse. With proper team management and motivation of not only individual employees but the entire team, it becomes significantly easier to achieve the desired deliverables within the designated time-frame. Every employee should understand that everyone has the right to make mistakes and can ask for help from colleagues and management. However, in a well-balanced team, driven and motivated to achieve the best results, concealing mistakes or problems with the hope that they will disappear is simply not tenable.

”

Positive motivation should be employed wherever possible. Criticism has its place but should be used sparingly, mainly in crisis situations. When a surgeon needs a scalpel, and a nurse gives him tweezers, there's no time for explanations; the surgeon simply demands the correct tool be given to him immediately. Criticism can be constructive and oriented towards future changes. In such situations, rather than venting frustration, one must focus on the goal and propose a plan of action. For instance, one could say, “I would appreciate it if, next time, you could…” or “How do you think this issue could be resolved …” This approach provides an understanding of how to act and what competencies it takes, encouraging the exchange of ideas and active participation in the planning process.

5. A system composed of interchangeable elements (modules) is better than a rigid structure. When key processes, resources, and tools are concentrated in a few locations, the loss of any of them, even for a short time, can cause significant damage, and a Meccano-type system is far more advantageous. A prime illustration of this is 1C, which offers a high degree of customization for various purposes. If one of the applications becomes obsolete, the company can seamlessly transition to others without incurring losses.

The same principle applies to corporate culture: if there are standout individuals in the team who handle numerous processes themselves, they are difficult to replace, so involvement and ensuring the continuity of expertise, a topic I will discuss in Chapter 4, are essential.

STRATEGY AS A COMPONENT OF CORPORATE CULTURE

A “live” strategy enables the organization to drive and scale from within by optimizing resources and disclosing untapped potential.

90 % of the ideas that make an organization productive are already there.

There are always hidden reserves in a company. They are concealed in overloaded processes, regulations, and suboptimal communications, when tasks are transferred between different units or meetings are lengthy. In most cases, managers and top management tend to focus solely on the surface, overlooking the untapped productivity reserves hidden beneath. To correctly distribute efforts without wasting time and opportunities, one must delve deeper, measure the depth, and gain a comprehensive understanding of the information residing there (see Figure 6).

The key to a better utilization of the internal corporate potential lies in maintaining a healthy corporate culture and involving the entire team in the process of strategy-building. This process aids in concretizing ideas concerning the current situation within the organization, and understanding which aspects require re-prioritizing and/or improvement, such as processes, models, procedures, and tools.

Companies that foster a culture centered on team engagement and innovation tend to be more successful and have a greater likelihood of achieving top-tier results.

The team’s ideas help scale from within: one change leads to another, revealing certain imperfect processes and problem-solving tools along the way.

The implementation of a team’s strategic plan is more dynamic and enthusiastic: when people are inclined to support goals and objectives they have had a hand in developing, rather than ones imposed from the outside that disregard their input.

If the team is aligned with you, it:

• Becomes a driver of strategy implementation;

• Contributes to the systematization of processes, operating from within, at the level of interpersonal communication;

• Is motivated for results;

• Is engaged in continuous progress and improvement;

• Helps implement changes, including digital processes.

Digital tools accelerate transformation and increase productivity by eliminating unnecessary routines, reducing the time and sequence of actions, and reducing the required effort. The successful and timely implementation of the tools directly depends on their acceptance by the team and the team's active involvement in the process.

Therefore, Successful Leadership Strategy #1 in an era of change involves engaging the team in strategy development and establishing shared goals and values with key partners and stakeholders within the organization's ecosystem.

A shared mission and common values unite the ecosystem team at the level of their core convictions. In an era of global rethinking and constant change, belief-based consolidation is essential.

MISSION IS WHY AND FOR WHOM WE WORK. STRATEGY IS THE WAY TO ACHIEVE OUR GOALS

When there is a common foundation – a mission – processes evolve naturally, free from unnecessary stress and toxicity. In a team of like-minded people, where everyone understands the purpose and significance of the task, there is no room for bureaucracy, power struggles, or the passing of responsibility to others. The questions are initially worded differently: “What else can we improve as a team?” and “How can I personally contribute?”

Then the organization develops as a healthy and harmonious organism, an ecosystem.

• All functions mutually support one another. When a failure occurs, there is no energy wasted on assigning blame. Instead, mistakes serve as opportunities for growth.

• Processes operate in a coordinated fashion and are aimed at tackling a shared challenge. If someone departs from the process, the workload is redistributed among other elements of the ecosystem, and the latter, in turn, quickly adapts to changes.

• When the load on the ecosystem increases, it automatically activates its “immune defense” by initiating transformation mechanisms.

In organizations where open relationships of trust prevail, ideas from leaders are embraced by the entire team, and leaders, in turn, listen to the opinions of their colleagues.

For example, a hotel chain, with whom we jointly created a code of values for employees, promotes transparency and encourages the adoption of important strategic decisions by the team. People openly share opinions, joke, complement each other, and align with shared values. During the strategy session, the team embarked on one course of action almost immediately, even without extensive preparatory work. Values already existed, we merely identified them and agreed on the wording.

This implies that ideas and goals are not solely conveyed through documentation and other official channels. They are also understood on subtler levels: through informal communication, day-to-day activities, the influence of role models, and the dynamics of team relationships.

Merely agreeing on values and the creation of appealing visualizations is not enough. Values are found within the environment that shapes our behavior, the assessment of our strengths and abilities, role models, and our beliefs. This is the principle underlying neurological levels of Dilts Pyramid. It can also be applied to a corporate environment (see Figure 7). The alignment based on values goes deeper and requires sincerity and integrity from both parties. This is why internal communications, a topic we will explore in another chapter, take center stage.

GOAL-BASED AND VALUE-DRIVEN MANAGEMENT SYSTEM

For excellent ideas to transform from mere slogans into genuinely meaningful dialogues, communications should be conducted through various channels, ensuring an uninterrupted flow of ideas and feedback from all stakeholders. It is vital to gauge the significance of these dialogues for the team: is the mission truly understood, and how does it translate into daily activities? To achieve this alignment, goals and values need to be seamlessly integrated into all significant processes within the organization. This is how goal and value-based system management operates (see Figure 8). It involves understanding and embedding goals and values at all stages of project implementation – from setting objectives to evaluating outcomes.

Taking HR processes as an example, goals are frequently broken down into team bonus systems based on key performance indicators (KPIs), while values become the foundation for corporate codes and corporate competency models that are used in team selection, evaluation, and training. Even when choosing training programs, the team relies on a code of values that outlines the most significant development competencies.

Thus, the team has a common foundation and a clear understanding of what it implements (goals) and how it interacts within itself (values). Goals represent what we achieve together and the direction we are heading in, while values govern how we work and the approaches and relationships we have within the team.

The organization's goals are transformed into bonus systems based on metrics and employees’ KPIs, thus becoming an integral part of their assignments. Values, whether in client relations or interactions among employees, in processes and communications are defined, verbalized, and then translated into role models and governing rules that can be scaled and ideally correlate with human values. It is important to consider these factors from the outset, especially during the employee selection process through competency interviews.

Thus, employees are more deeply involved and develop stronger relations with the organization. This occurs when employees fulfilling tasks not only excel as professionals but also as individuals, becoming integral elements of the organization's ecosystem, and actively sharing its values and approaches.

By involving the team in the key corporate processes, we cultivate reliable partners who do not engage in declarative or formalistic actions merely for appearances (job done, go home), but are genuinely invested in the success of the organization, contribute ideas, improve strategies and approaches, and most importantly, are more loyal to changes, some of which they have proposed themselves. Such teams have the transformative power to reshape organizations.

Chapter 2. Corporate culture as a driver of innovation. Laying the foundation for organizational improvement and development

Why do changes succeed and benefit some organizations, while in others they are rejected without response and effective application? Because the success of any implementation largely depends on the team.

EVEN THE MOST PERFECT STRATEGY CAN FAIL IF NOT ACCEPTED BY THE TEAM

A strong corporate culture has two important features:

1. It either propels or impedes change, depending on whether the team accepts it;

2. In times of external changes, it helps to maintain stability by strengthening internal ties.

Today, financial achievements and motivation remain instrumental, but they are not the only indicators, especially in the context of long-term, sustainable development.

To ensure stability in a turbulent environment, adaptability and flexibility must be maintained. While competent planning and digital tools are important, the human factor will always play a significant role in determining the degree of success. When the team lacks cohesion, indicators may decline, and when goals are not shared, it can lead to unnecessary chaotic actions that hinder the implementation of changes.

Sentiments, behavior and communication patterns, sets of values, principles, and prepared reactions collectively make up the corporate culture and corporation environment (see Figure 9). This environment serves as the “home” and shared space where goals, values, approaches to transformation, and interactions with clients and within the team coexist. The culture manifests itself on six logical levels.

1. Mission. Answers the questions “Why?” and “What is the point?”.

2. Identity. Determines the individual and collective identity of employees (“Who are we in the team?”, “What is our role?”).

3. Values. Shapes attitudes, stereotypes, beliefs, and motives, outlines the criteria (“What is important/not important for me and why?”, “What do I believe in?”).

4. Abilities. Allows for the assessment of abilities, strengths and weaknesses, skills and competencies. Reveals opportunities for addressing challenges by providing insight into how to act.

5. Behavior. Creates behavioral patterns (“What should we do?”).

6. Environment. Models reality (“Who are we?”, “Where are we?”, “What surrounds us?”).

THE CULTURE WITHIN AN ORGANIZATION INFLUENCES THE DIRECTION AND DYNAMICS OF ITS DEVELOPMENT, EITHER BY SUPPORTING PROGRESS TOWARDS THE NEW OR BY HINDERING IT

The corporate environment also plays an important role as a hearth and home. It can sustain the organization through “hearth and home” relations, especially in times of external changes. In such situations, a united team collaboratively formulates new rules and transforms processes, adapting to the new realities.

“CULTURE EATS STRATEGY FOR BREAKFAST” (P. DRUCKER)

The bad news is that as long as the corporate culture remains beautiful but disconnected from reality, the organization will not rise to lofty heights. In this scenario, the strategy remains merely an image – it may sound impressive but lacks resonance with others and holds value only in your own perspective.

The good news is that corporate culture is flexible. It can be customized and adjusted to create an environment in which the team embraces productive change and focuses on sustainable development and systematic progress. Culture is a target; it can be created, modified, evaluated, and measured.

Internal stakeholders of the organization’s ecosystem, primarily the leader and the team, must change their way of thinking in order to perceive change as a natural process, an integral aspect of corporate life, and something that occurs continuously.

Therefore, Successful Leadership Strategy #2 in an era of change is about building a corporate culture of innovation and an environment open to improvement. It also entails implementing a systematic approach for collecting, analyzing, and testing ideas.

How to achieve this?

THE FOUR PILLARS OF THE CORPORATE CULTURE OF INNOVATION

1. Clarity and transparency of corporate goals, strategies, and mission

When working with a team, visibility is important. This entails making clear the results to be achieved and the deadline, why they are important for the organization and its employees, and the specific role of each project participant.

In organizations with an open and trust-based system of internal interaction, innovations originating from leaders are palpable and sensed by the entire team. People willingly communicate with each other, essentially articulating the same values.

Goals should be open, understandable, and feasible. Ideally, a task map should be designed with a short lead time (sprints) to monitor and adjust processes while taking into account emerging changes.

2. Shared values and joint development

Corporate values and missions should resonate with employees. Otherwise, it becomes incredibly challenging to maintain motivation and engagement. Conversely, if the team understands and shares the goals and values of a project, it is easier to stimulate and persuade the team. The impulse originating from the leader is overlaid with the internal drive within individuals. This synergy gives rise to activity drivers that foster collective and sustainable development.

Each of us has attitudes, opinions, experiences, and lifestyles of our own. However, when we begin to engage in constructive negotiation, seek common ground, and align around shared goals, we move one step closer to working together with a unified focus. Simultaneously, we can contribute our individual strengths and competencies to a collective effort.

Values also serve as a litmus test. What loyal employees find challenging to accept is likely not well-suited for the project or may require further reconsideration and testing.

3. Multi-level leadership system and handling limiting beliefs

A multi-level leadership system means that the organization has competent middle and line management; the heads of departments demonstrate the authority and ability to make decisions within their respective functions as required. The principle of cross-functionality is ensuring that when a manager is on vacation, they are replaced by someone with the necessary competencies and a willingness to assume responsibility.

In this context, revealing leadership potential and addressing beliefs that prevent the manifestation of strengths become paramount. While combating laziness and reluctance to work may be fruitless (it is often more effective to assemble a team of people genuinely interested in the work), it is possible to recognize and surmount the limitations. To achieve this, it is necessary to teach so-called soft skills: effective communication, negotiation, critical thinking, team management, time management, and projects. Additionally, meta-skills such as awareness, emotion management, out-of-the-box thinking, and more play a vital role. Furthermore, it is crucial to encourage employees' ideas, nurture their creativity, and encourage their desire to develop.

4. Efficient neural communication (omnichannel interaction) with a focus on continuous development and improvement

When everyone (or the majority) can communicate with everyone, it becomes easier to disseminate and gain acceptance for new concepts. This is particularly relevant today, with employees residing in different cities and representing diverse cultures and worldviews, thanks to telecommuting.

Joint educational initiatives become the foundation for a common set of concepts and discourses, streamlining communication and making it more efficient.

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ELENA GLUKHOVA, DEA expert, Doctor of Business Administration, business consultant:

– Techies and humanists, IT specialists and marketers, call center workers and extras – all these individuals operate within different categories and speak different languages due to the specific cultural discourses of their respective professions. Agreement necessitates a culture of cross-interaction and a shared understanding that is facilitated by a common glossary – a cohesive and understandable set of narratives and competencies. These tools establish a unified space for effective employee interaction, irrespective of differences in their worldviews.

This can also be facilitated by “interpreters of meaning” – employees who are on the periphery and can translate the ideas and thoughts from one speaker to another. In IT companies, this role is performed by analysts who can convey to developers what the customer wants or what the manager proposes to implement, and vice versa. They also explain technical intricacies to new employees, help to find optimal solutions, demonstrate how functionality can or cannot be provided, and so on.

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The strengthening of ties and finding common concepts are also facilitated by employees learning from each other, expanding their competencies and horizons. The more extensive they are, the greater the points of contact and opportunities for joint growth. In some cases, this challenge is addressed by introducing temporary employees who can strengthen the team and reveal the strengths of individuals who might otherwise go unnoticed. Especially when it comes to unconscious competencies: that is, a person who has a predisposition to something that he has not tried, or has not studied (“I don't know if I know this”).

When I was the HR director for Russia and the CIS in a global hotel corporation, we regularly conducted employee engagement surveys and, based on the collected data, we devised measures to improve employee loyalty. It turned out that many employees viewed corporate values as something abstract and not fully tangible or relatable. This was partly because the regional divisions were mostly left to their own devices, as there was limited collaboration among teams from different locations. The situation was further complicated by factors such as the geographical remoteness of the hotels and differences in the interpretation of wording translated from one language to another.

The solution was to conduct team building activities and promote one of the company’s core values – the opportunity to be oneself. The primary objective was to create an environment where each team member not only felt unique but also experienced a strong sense of belonging to a unified community.

Employees were invited to take part in a photo shoot with a professional photographer and show their lives outside of the workplace, sharing their interests and hobbies. Some employees brought skiing equipment, others brought flowers from their gardens, and some even brought their pets along. As a result, the employees obtained beautiful pictures, while corporate albums and presentations were replenished with vibrant photos of employees from different hotels. This initiative helped to bring the company's values closer to employees.

The process of preparation and discussions brought the teams closer; people began to understand each other better and engage in conversations that extended beyond work-related topics. This development has become an element of the new unified corporate culture and a system of informal communication as employees continue to communicate outside of the workplace.