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Manage Your Emotional Culture

Sigal BarsadeOlivia A. O Neill

From the January February 2016 Issue

Before leaving work each day, employees at Ubiquity Retirement + Savings press

a button in the lobby. They re not punching out not in the traditional sense,

anyway. They re actually registering their emotions. They have five buttons to

choose from: a smiley face if they felt happy at work that day, a frowny face

if they felt sad, and so on.

This may sound like an HR gimmick ( See? Management cares how you feel! ) or an

instrument of forced satisfaction ( The team with the most smiley faces wins!

). But it s neither. Ubiquity is using the data it collects to understand what

motivates employees to learn what makes them feel a sense of belonging and

excitement at work. Other organizations are starting to do the same. Some use

apps that record how much fun people are having. Some hire technology

consultants who specialize in the monthly, weekly, daily, or even hourly

tracking of moods. Unfortunately, though, these organizations are in the

minority. Most companies pay little attention to how employees are or should be

feeling. They don t realize how central emotions are to building the right

culture.

When people talk about corporate culture, they re typically referring to

cognitive culture: the shared intellectual values, norms, artifacts, and

assumptions that serve as a guide for the group to thrive. Cognitive culture

sets the tone for how employees think and behave at work for instance, how

customer-focused, innovative, team-oriented, or competitive they are or should

be.

Cognitive culture is undeniably important to an organization s success. But it

s only part of the story. The other critical part is what we call the group s

emotional culture: the shared affective values, norms, artifacts, and

assumptions that govern which emotions people have and express at work and

which ones they are better off suppressing. Though the key distinction here is

thinking versus feeling, the two types of culture are also transmitted

differently: Cognitive culture is often conveyed verbally, whereas emotional

culture tends to be conveyed through nonverbal cues such as body language and

facial expression.

Despite a renaissance of scholarship (dubbed the affective revolution ) on the

ways that emotions shape people s behavior at work, emotional culture is rarely

managed as deliberately as cognitive culture and often it s not managed at all.

Companies suffer as a result. Employees who should be showing compassion (in

health care, for example) become callous and indifferent. Teams that would

benefit from joy and pride instead tolerate a culture of anger. People who lack

a healthy amount of fear (say, in security firms or investment banks) act

recklessly. The effects can be especially damaging during times of upheaval,

such as organizational restructurings and financial downturns.

In our research over the past decade, we have found that emotional culture

influences employee satisfaction, burnout, teamwork, and even hard measures

such as financial performance and absenteeism. Countless empirical studies show

the significant impact of emotions on how people perform on tasks, how engaged

and creative they are, how committed they are to their organizations, and how

they make decisions. Positive emotions are consistently associated with better

performance, quality, and customer service this holds true across roles and

industries and at various organizational levels. On the flip side (with certain

short-term exceptions), negative emotions such as group anger, sadness, fear,

and the like usually lead to negative outcomes, including poor performance and

high turnover.

Every organization has an emotional culture, even if it s one of suppression.

So when managers ignore emotional culture, they re glossing over a vital part

of what makes people and organizations tick. They may understand its importance

in theory but can still shy away from emotions at work. Leaders expect to

influence how people think and behave on the job, but they may feel ill

equipped to understand and actively manage how employees feel and express their

emotions at work. Or they may regard doing so as irrelevant, not part of their

job, or unprofessional.

In our interviews with executives and employees, some people have told us that

their organizations lack emotion altogether. But every organization has an

emotional culture, even if it s one of suppression. By not only allowing

emotions into the workplace, but also understanding and consciously shaping

them, leaders can better motivate their employees. In this article we ll

illustrate some of the ways in which emotional culture manifests at work and

the impact it can have in a range of settings, from health care and emergency

services to finance, consulting, and high tech. Drawing on our findings, we ll

also suggest ways of creating and maintaining an emotional culture that will

help you achieve your company s larger goals.

Delving Beneath the Surface

Some companies have begun to explicitly include emotions in their management

principles. For instance, PepsiCo, Southwest Airlines, Whole Foods Market, The

Container Store, and Zappos all list love or caring among their corporate

values. Similarly, C&S Wholesale Grocers, Camden Property Trust, Cisco Finance,

Ubiquity, and Vail Resorts, along with many start-ups, highlight the importance

of fun to their success.

But to get a comprehensive read on an organization s emotional culture and then

deliberately manage it, you have to make sure that what is codified in mission

statements and on corporate badges is also enacted in the micromoments of

daily organizational life. These consist of small gestures rather than bold

declarations of feeling. For example, little acts of kindness and support can

add up to an emotional culture characterized by caring and compassion.

Facial expressions and body language are equally powerful. If a manager

consistently comes to work looking angry (whether he means to or not), he may

cultivate a culture of anger. This phenomenon is surprisingly common: In one

study, Don Gibson, the dean and a professor of management at Fairfield

University s Dolan School of Business, found that working professionals from

multiple organizations actually felt more comfortable expressing anger than joy

on the job (they reported expressing anger three times as often). You can

imagine the ripple effects.

Office d cor and furnishings, too, may suggest what s expected or appropriate

emotionally. Photos of employees laughing at social events or action figures

perched on cubicle walls can signal a culture of joy. Signs with lists of rules

and consequences for breaking them can reflect a culture of fear. Comfy chairs

and tissues in small conference rooms convey that it s OK to bare your soul or

cry if you need to.

But as Edgar Schein, a professor emeritus at MIT s Sloan School, has shown with

his popular three levels of culture model, the most deeply entrenched

elements of organizational culture are the least visible. Take, for instance,

the deep underlying assumption that pitting employees against one another gets

the best work out of them. That s not the kind of thing managers publicize;

sometimes they re even unaware that they are fostering this dynamic. And yet it

s felt by leaders and employees alike. While it may result in healthy

competition, it s just as likely to create a strong culture of envy, which can

erode trust and undermine employees ability to collaborate.

Emotional Cultures in Action

Nearly 30 years ago the social psychologist Phil Shaver and his colleagues

found that people can reliably distinguish among 135 emotions. But

understanding the most basic ones joy, love, anger, fear, sadness is a good

place to start for any leader trying to manage an emotional culture. Here are a

few examples to illustrate how these emotions can play out in organizations.

A culture of joy.

Let s begin with one that s often clearly articulated and actively reinforced

by management above the surface and easy to spot. Vail Resorts recognizes that

cultivating joy among employees helps customers have fun too, which matters a

lot in the hospitality business. It also gives the organization an edge in

retaining top talent in an extremely competitive industry. Have fun is listed

as a company value and modeled by Vail s CEO, Rob Katz who, for instance, had

ice water dumped on his head during a corporate ALS Ice Bucket Challenge and

then jumped fully clothed into a pool. About 250 executives and other employees

followed his lead.

---

Tracking Emotions

Companies have started using apps like Niko Niko to help individual employees

and teams log their emotional reactions to various activities and make the

connection between their moods and productivity.

---

This playful spirit at the top permeates Vail. Management tactics, special

outings, celebrations, and rewards all support the emotional culture. Resort

managers consistently model joy and prescribe it for their teams. During the

workday they give out pins when they notice employees spontaneously having fun

or helping others enjoy their jobs. Rather than asking people to follow

standardized customer service scripts, they tell everyone to go out there and

have fun. Mark Gasta, the company s chief people officer, says he regularly

sees ski-lift operators dancing, making jokes, doing whatever it takes to have

fun and entertain the guest while ensuring a safe experience on the slopes. On

a day-to-day basis, Vail encourages employees to collaborate, because, as Gasta

points out, leaving people out is not fun. At an annual ceremony, a Have Fun

award goes to whoever led that year s best initiative promoting fun at work.

The resort also fosters off-the-job joy with first tracks (first access to

the ski slopes for employees), adventure trips, and frequent social gatherings.

All this is in service to an emotional culture that makes intuitive sense. (Joy

at a ski resort? Of course.) But now consider an organization where the demand

for joy wasn t immediately visible. When we surveyed employees at Cisco Finance

about their organization s emotional culture, it became clear to management

that fostering joy should be a priority. The survey didn t ask employees how

they felt at work; it asked them what emotions they saw their coworkers

expressing on a regular basis. (By having employees report on colleagues

emotions, researchers could obtain a more objective, bird s-eye view of the

culture.) It turned out that joy was one of the strongest drivers of employee

satisfaction and commitment at the company and more of it was needed to keep up

engagement.

So management made joy an explicit cultural value, calling it Pause for Fun.

This signaled that it was an important outcome to track just like productivity,

creativity, and other elements of performance. Many companies use annual

employee engagement surveys to gauge joy in the abstract, often in the form of

job satisfaction and commitment to the organization. But Cisco Finance measured

it much more specifically and is conducting follow-up surveys to track whether

it is actually increasing. In addition, leaders throughout the organization

support this cultural value with their own behavior for example, by creating

humorous videos that show them pausing for fun.

A culture of companionate love.

Another emotion we ve examined extensively one that s common in life but rarely

mentioned by name in organizations is companionate love. This is the degree of

affection, caring, and compassion that employees feel and express toward one

another.

In a 16-month study of a large long-term-care facility on the East Coast, we

found that workers in units with strong cultures of companionate love had lower

absenteeism, less burnout, and greater teamwork and job satisfaction than their

colleagues in other units. Employees also performed their work better, as

demonstrated by more-satisfied patients, better patient moods, and fewer

unnecessary trips to the emergency room. (Employees whose dispositions were

positive to begin with received an extra performance boost from the culture.)

The families of patients in units with stronger cultures of companionate love

reported higher satisfaction with the facility. These results show a powerful

connection between emotional culture and business performance.

Because this study took place in a health care setting, we wondered whether

companionate love matters only in helping industries. So we surveyed more

than 3,200 employees in 17 organizations spanning seven industries:

biopharmaceutical, engineering, financial services, higher education, public

utilities, real estate, and travel. In organizations where employees felt and

expressed companionate love toward one another, people reported greater job

satisfaction, commitment, and personal accountability for work performance.

Take Censeo, a consulting firm that has deliberately cultivated a culture of

companionate love. Cofounder and CEO Raj Sharma wanted to build a company that

made authentic connections with clients. Along the way, Sharma realized that

this strategy, which increased clients trust and the firm s impact, was also

critical to Censeo s organizational culture.

Now the firm hires people who will help sustain its culture; that means turning

away some really smart people who would destroy it. Censeo also encourages

employees to cultivate genuine relationships by interacting socially both at

and outside work. The message seems to be getting through: When asked to

describe colleagues at the firm, one junior analyst called them my friends.

Employees also hold themselves accountable for treating one another with

compassion. They ll confront colleagues including those above them in the

hierarchy for blatantly disregarding the feelings of others or frequently

blowing up at coworkers.

A culture of fear.

Of course, organizations can be defined by negative emotions as well. In Turn

the Ship Around! the retired Navy captain L. David Marquet describes how a

culture of fear plagued the USS Santa Fe, a nuclear submarine that suffered

under extreme command-and-control leadership before he took over. The crew had

low morale and the worst retention rate in the fleet.

Nuclear submarines must accomplish their missions while maintaining security

and safety, so performance depends in large part on the skill and judgment of

the crew. Marquet argues that the constant fear of being yelled at for making

mistakes, not knowing things, challenging authority, and so on made it harder

for sailors to think well and act quickly. This view is backed by research that

the Berkeley professor emeritus Barry Staw and his colleagues have done on

threat rigidity (the tendency to narrow one s focus under threat) and by

findings on the impact of excessive stress on the prefrontal cortex: It impairs

executive functions such as judgment, memory, and impulse control.

Marquet changed that emotional culture by using classic high involvement

management techniques, such as empowering crew members to make decisions and

not punishing them for every misstep. As a result, they became more confident

and accountable and less inclined to simply wait for permission or directions

from their commanding officer. The transformation paid off. Marquet led the

ship from low-performing to award-winning, and 10 of his top 20 officers later

went on to become submarine captains.

What Happens When Emotions Intersect

Clearly, fear can be toxic, but even positive emotions can have unintended side

effects if given too much sway. In a culture of unmitigated joy, fun might

impede work. In a culture of love, where everyone feels like family, employees

might struggle to have honest conversations about problems. To quote one person

we interviewed, People don t want to talk about conflict because they don t

want to get in the way of the love.

Sometimes organizations avoid those problems because multiple emotions balance

one another out. For example, in a comprehensive study of firefighters

organizational culture (conducted by one of us, Olivia O Neill, and Nancy

Rothbard, a professor at Wharton), two emotions came through quite strongly.

Participants described a culture of joviality, expressed mainly through

elaborate jokes and pranks. (They said their most important rule for hiring

someone new was No stiffs. ) But that coexisted with a culture of companionate

love, which the researchers hadn t expected to see in a typically masculine

profession. The firefighters supported one another emotionally offering words

of encouragement when someone was struggling after a tough call, for example,

or was going through a painful divorce. They also offered nonverbal gestures of

affection, such as a bear hug for someone who was choked up over a personal

issue.

There were reasons for both emotional cultures to be strong: Joviality helped

teams coordinate better on the job, because all the pranks had honed their

understanding of individuals weaknesses (anthropologists would call this an

evolutionary advantage of play). Monitoring and managing those weaknesses is

particularly important in fast-moving, high-stress, or dangerous situations.

And companionate love helped the firefighters heal from the traumatic events

endemic in their jobs.

Like any other emotion, companionate love can lead to varying outcomes,

depending on what it s paired with. For the firefighters, it had a tempering

effect on the joviality and teasing, which if taken to extremes could become

isolating and hurtful.

Another example of how emotions intersect comes from our research with the Cat

lica-Lisbon professor Francesco Sguera. In a study of a major medical center in

the United States, we found that the emotional culture was largely defined by

anxiety and anger. The medical center s punishment-based point system

reinforced the anxiety: If you call in sick, you get a point, an employee

wrote. If you are one minute late for work, you get a point. We often feel

that we are liabilities to the department, as disposable as gauze. The rampant

anxiety led to many negative outcomes, including poor financial performance,

burnout, and low job satisfaction. However, in units where a strong culture of

anxiety was coupled with companionate love, employee performance and attitudes

matched those in units with lower anxiety. The culture of companionate love

essentially served as an antidote to the culture of anxiety. It reduced the

negative impact on the bottom line specifically, on gross profit margin by

offsetting the ill effects on employee attitudes and behavior. Although

employees expressed a lot of anxiety and saw it all around them, knowing that

they were cared for by their colleagues helped them to deal with it.

Creating an Emotional Culture

To cultivate a particular emotional culture, you ll need to get people to feel

the emotions valued by the organization or team or at least to behave as if

they do. Here are three effective methods:

Harness what people already feel.

Some employees will experience the desired emotions quite naturally. This can

happen in isolated moments of compassion or gratitude, for example. When such

feelings arise regularly, that s a sign you re building the culture you want.

If people have them periodically and need help sustaining them, you can try

incorporating some gentle nudges during the workday. You might schedule some

time for meditation, for instance; or provide mindfulness apps on people s work

devices to remind them to simply breathe, relax, or laugh; or create a kudos

board, like the one in an ICU we studied, where people can post kind words

about other employees.

But what can you do about emotions that are toxic to the culture you re

striving for? How can you discourage them when they already exist? Expecting

people to put a lid on those feelings is both ineffective and destructive;

the emotions will just come out later in counterproductive ways. It s important

to listen when employees express their concerns so that they feel they are

being heard. That s not to say you should encourage venting, or just let the

emotions flow with no attempt at solving the root problems. Indeed, research

shows that extended venting can lead to poor outcomes. You re better off

helping employees think about situations in a more constructive way. For

example, loneliness, which can eat away at employee attitudes and performance,

is best addressed through cognitive reappraisal getting people to reexamine

their views of others actions. Considering plausible benign motivations for

their colleagues behavior will make them less likely to fixate on negative

explanations that could send them into a spiral.

Model the emotions you want to cultivate.

A long line of research on emotional contagion shows that people in groups

catch feelings from others through behavioral mimicry and subsequent changes

in brain function. If you regularly walk into a room smiling with high energy,

you re much more likely to create a culture of joy than if you wear a neutral

expression. Your employees will smile back and start to mean it.

But negative feelings, too, spread like wildfire. If you frequently express

frustration, that emotion will infect your team members, and their team

members, and so on throughout the organization. Before you know it, you ll have

created a culture of frustration.

People in groups catch feelings from others.

So consciously model the emotions you want to cultivate in your company. Some

organizations go a step further and explicitly ask employees to spread certain

emotions. Ubiquity Retirement + Savings says, Inspire happiness with

contagious enthusiasm. Own your joy and lend it out. Vail Resorts says, Enjoy

your work and share the contagious spirit.

Get people to fake it till they feel it.

If employees don t experience the desired emotion at a particular moment, they

can still help maintain their organization s emotional culture. That s because

people express emotions both spontaneously and strategically at work. Social

psychology research has long shown that individuals tend to conform to group

norms of emotional expression, imitating others out of a desire to be liked and

accepted. So employees in a strong emotional culture who would not otherwise

feel and express the valued emotion will begin to demonstrate it even if their

initial motivation is to be compliant rather than to internalize the culture.

This benefits the organization, not just the individuals trying to thrive in

it. In early anthropological studies of group rituals, strategic emotional

expression was found to facilitate group cohesion by overpowering individual

feelings and synchronizing interpersonal behavior.

---

Cultural Artifacts

An organization s physical environment can send cues subtle or strong about

which feelings employees do and should express at work. Here are some examples:

1 This coworking space for technology start-ups reflects a culture of joy and

fun. Note the robo-cocktail posters and drones parked on the wall.

2 An intensive care unit at one university hospital has a culture of fear:

Employees must stay silent so as not to disturb critically ill patients.

3 But fear and sadness in the ICU are mitigated by companionate love, reflected

in this kudos board for employees.

---

So maintaining the appropriate culture sometimes entails disregarding what you

are truly feeling. Through surface acting, employees can display the valued

emotion without even wanting to feel it. Surface acting isn t a long-term

solution, though. Research shows that it can eventually lead to burnout

particularly in the absence of any outlet for authentic emotions.

A better way to cultivate a desired emotion is through deep acting. With this

technique, people make a focused effort to feel a certain way, and then

suddenly they do. Imagine that an employee at an accounting firm has a family

emergency and requests a week off work at the height of tax audit season.

Although his boss s first thought is No not now no! she could engage in deep

acting to change her immediate feelings of justifiable panic into genuine

caring and concern for her subordinate. By trying hard to empathize, saying Of

course you should go be with your family! and using the same facial

expressions, body language, and tone of voice she would use when actually

feeling those emotions, she could coax herself into the real thing. She would

also be modeling a desired behavior for the subordinate and the rest of the

team.

Fortunately, all these ways of creating an emotional culture whether they

involve really feeling the emotion or simply acting that way can reinforce one

another and strengthen the culture s norms. People don t have to put on an act

forever. Those who begin by expressing an emotion out of a desire to conform

will start to actually feel it through emotional contagion. They ll also

receive positive reinforcement for following the norms, which will make them

more likely to demonstrate the emotion again.

Of course, the culture will be much stronger and more likely to endure if

people truly believe in the values and assumptions behind it. Someone who is

uncomfortable with an organization s emotional culture and has to keep

pretending in order to be successful would probably be better off moving to a

different work environment. Companies often have more than one emotional

culture, so another unit or department might be a good fit. But if the culture

is homogeneous, the employee may want to leave the company entirely.

Implementation Matters at All Levels

Just like other aspects of organizational culture, emotional culture should be

supported at all levels of the organization. The role of top management is to

drive it.

Leaders are often insufficiently aware of how much influence they have in

creating an emotional culture. Traci Fenton is the founder and CEO of WorldBlu,

a consulting firm that tackles fear at work. She shares this example: At one

Fortune 500 company, unbeknownst to the CEO, senior employees regularly use

text message codes to describe his nonverbal expressions of anger in meetings.

RED means he is getting red in the face. VEIN means his veins are popping

out. ACP, which stands for assume the crash position, means he is about to

start throwing things. This leader is very effective at creating an emotional

culture but it s probably not the one he wants.

So don t underestimate the importance of day-to-day modeling. Large, symbolic

emotional gestures are powerful, but only if they are in line with daily

behavior. Senior executives can also shape an emotional culture through

organizational practices. Take compassionate firing, which is common at

companies that build a strong culture of companionate love. Carlos Gutierrez,

the vice president of R&D systems at Lattice Semiconductor, was deeply

concerned about the impact of layoffs on his employees. He recognized that the

traditional HR protocol of asking terminated employees to clean out their desks

immediately and leave the premises would be especially painful to people who

had worked side by side for 10 to 20 years. Along with his partners in HR and R

&D, he implemented a protocol whereby employees had an extended time to say

good-bye to their colleagues and to commemorate their time together at the

company. Also, although two-thirds of the R&D workforce is outside the United

States, Sherif Sweha, the corporate vice president of R&D, believed it was

important for the affected team members in each region to receive the news from

a senior leader face-to-face. So he and members of his staff flew to the

company s sites in Asia to have in-person conversations with all the employees

to be laid off and also those who would remain with the company.

Though top management sets the first example and establishes the formal rules,

middle managers and frontline supervisors ensure that the emotional values are

consistently practiced by others. Because one of the biggest influences on

employees is their immediate boss, the suggestions that apply to senior

executives also apply to those managers: They should ensure that the emotions

they express at work reflect the chosen culture, and they should speak

explicitly about what is expected from employees.

It s also important to link the emotional culture to operations and processes,

including performance management systems. At Vail Resorts the culture of joy

has been incorporated into the annual review, which indicates how well each

employee integrates fun into the work environment and rates everyone on

supporting behaviors, such as being inclusive, welcoming, approachable, and

positive. Someone who exceeds expectations is described as not only taking part

in the fun but also offering recommendations to improve the work environment

to integrate fun.

Decades worth of research demonstrates the importance of organizational

culture, yet most of it has focused on the cognitive component. As we ve shown,

organizations also have an emotional pulse, and managers must track it closely

to motivate their teams and reach their goals.

Emotional culture is shaped by how all employees from the highest echelons to

the front lines comport themselves day in and day out. But it s up to senior

leaders to establish which emotions will help the organization thrive, model

those emotions, and reward others for doing the same. Companies in which they

do this have a lot to gain.

A version of this article appeared in the January February 2016 issue (pp.58

66) of Harvard Business Review.

Sigal Barsade is the Joseph Frank Bernstein Professor of Management at Wharton.

Olivia A. O Neill is an assistant professor of management at George Mason

University and a senior scholar at the school s Center for the Advancement of

Well-Being.