Over the past few years, business mostly focused on cutting costs. During this time, little attention was given to the value of business culture or the role leaders play in determining a firm’s culture. In addition, companies resisted investing in significant change.

As I was driving from Denver to Boulder Colorado this morning to meet Dave Taylor (www.askdavetaylor.com and www.intuitive.com) and a VC, to remain anonymous,  I pondered, when it comes to culture and change, “Are people boulders or levers?” (Sorry it seems corny, but the brain naturally flutters like a butterfly from one boulder to the next.)

The shift from financial capital to ideation.

As the world’s wealth increases (100 more billionaires this year), financial capital becomes a commodity. The only real differentiator and driver of value in the economy becomes innovation. Great ideas attract financial capital, and new ideas can destroy the financial value of entire markets. The power and threat of innovation is on the mind of today’s leaders.

The acceleration in the flow of ideas is the greatest story of our times, and the ability to absorb innovation within businesses depends on culture. I have written recently about three surveys naming "business culture" as the barrier to change.

• Culture Crisis
• Culture Brakes Innovation Again
• Culture Wears the Black Hat Again

Is Business Culture a Boulder or a Lever?

As the above surveys show, the prevailing opinion is that culture is a barrier to change. This is because the common view of business is mechanistic. Business is made up of parts and processes: systems, functions, structures, capital, assets, and people. These are visible, tangible, and measurable (people are headcount and salaries). In this view, what’s inside people’s minds and hearts is an afterthought and mostly uncontrollable.

A cultural view of business focuses on human intentions: vision, purpose, wants, engagement, and commitment. Although more difficult to measure, numerous studies over the last decade verify that a compelling business culture positively correlates with sales and revenue growth, market share, ROI, ROA, quality, innovation, and employee satisfaction. This view sees culture is a lever.

What is the Role of Business Culture?

Ideation and the ability to absorb innovation will become the primary competitive determinate of business success. Ubiquitous connections put new emphasis on the ability to quickly assemble geographically dispersed teams, align intentions, and manage virtually. The question for leaders becomes, is our culture “a boulder of trouble” or “a lever of success" in a changing world?

For most leaders today, the answer is “boulder”. Two to five years from now, these companies may become trapped beneath an avalanche of failed projects and discouraged people. Good people leave bad situations. Clearly some organizations face the prospect of “change or die”. They must change mechanistically to remain competitive, but to become good at changing, they must change culturally.

A breakthrough happens when there’s a shift in thinking.

First, leaders at companies with engaging cultures spend as much time on intentions as they do on mechanisms. Second, rather than deciding on mechanistic changes and trying to prevent resistance, they are choosing engaging cultures and enabling people to create change.

These leaders know that when people feel they belong to something bigger than themselves, are using their strengths, are appreciated for their contributions, and have the resources needed to be successful, people do whatever is necessary, willingly and enthusiastically.

Infatuation with Simplicity

The human mind loves simplicity and dichotomies. The question of “boulder vs. lever” is rigged to play on human tendencies. People and cultures are complex, and there are many ways to initiate change in people and organizations. An organization does not require a belief shift to improve its business culture (but it is faster that way).

Still, it’s fun to play the simplicity game. So go ahead and ponder, where you work...

Are people thought of as boulders or levers?

Feel free to share your thoughts with me and other readers by commenting.

Keywords: business culture, cultural barriers, organization change, future of business culture, change leadership

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Michael Cushman, The Engaging Guru, wants you to master enrolling others in your truth, get the goodies of life, and change the world.  www.engagingchange.com