The Leadership Gold Standard:

A Blueprint to Culture Transformation

from the Top Down
Contents
Here’s what we’ll be covering in this guide. We recommend reading through
these in order for the best results.

Introduction 3

Develop accountable people 6

Foster a culture of helpfulness 11

Nurture employee engagement 14

Transform conflict 20

Build relationships 25

Recruit and retain top talent 29

Take corrective action 33

Measuring success: The metrics that matter 37

Conclusion 41
 Introduction
Leadership is
paramount to any
transformational
change within
an organization,
especially when it
comes to company
culture. Culture
transformation
happens from the
top down—making
your leaders the key
to unlocking the
benefits of a positive
company culture.

52%
of respondents in a recent Arbinger survey said
that leadership development has the greatest
impact on improving an organization’s culture. LEADERSHIP BLUEPRINT | 3
Think of it like this: you can bring about change
from the individual or team-level, but it’s more
effective when your leadership team is bought in,
setting the example, and leading the charge.

To transform your culture, an investment leadership to steer the ship is critical, and it’s
in leadership development is critical not the kind of initiative you can put on the
to yielding far-reaching benefits—and back burner until next quarter.
there’s countless studies to back that up.
52% of respondents in a recent Arbinger Through our experience with thousands
survey said that leadership development of companies, we’ve witnessed firsthand
has the greatest impact on improving an the remarkable trickle-down effect that
organization’s culture. 80% of executives happens when organizations prioritize the
say that strengthening organizational growth and development of their leadership
leadership is a high priority. And it’s been teams. If you’re looking to make any sort of
proven that employees who go through culture change, it’s most impactful when it
leadership training show a 20% increase happens from the top down.
in performance.
Think of it like this: you can bring about
Not only that, but to retain your best change from the individual or team-level,
employees you must invest in leadership. but it’s more effective when your leadership
Without quality leadership, employees team is bought in, setting the example, and
become disengaged at work, leading to leading the charge.
major performance and retention issues.
This alone will cost your organization. If you’re now wondering, where do I start?
Hiring a new employee to replace an old What does a good leadership program look
one is anywhere from an additional like? What does it include? How do I define
90% to 200% of the role’s annual salary. success? You’re in the right place.

With this data on the table, investing in

leadership development seems obvious,
yet it’s easier said than done. And if you’re
reading this, we’re sure you’d agree: when
it comes to leadership development, the
question is less about why than how.

In the last few years, the world of work

has seen more rapid changes than ever
before. In trying times, the need for strong

LEADERSHIP BLUEPRINT | 4
 In this guide, we’ll address these questions We advise looking at these steps as
by providing a blueprint for culture a hierarchy, with each step setting a
transformation starting at the leadership foundation for the next. In the following
level. You’ll find that gold standard sections, we’ll dig into what each of these
leadership and culture transformation go steps looks like in action.
hand in hand—and both are characterized
by how a leader not only sets an example At the end of this guide, we’ll provide a
for their team, but inspires the best out of set of metrics to gauge the success of
their team. your leadership program and provide a
measurement system to help you hold
In seven steps (see figure 1), we’ll explore yourself accountable to the process.
the core areas of leadership that should
be the focus of a successful leadership By successfully transforming your
development program. By zeroing in on leadership team, you will ultimately
these foundational areas, you’ll be able to catalyze a shift in your organizational
create transformative change within your culture. Ready to begin? Transformation
organization starting at the top. starts here!

FIGURE 1: Seven Core Areas of Leadership Development

Develop Nurture Take

Build
accountable employee corrective
relationships
people engagement action

Foster a
Transform Recruit &
culture of
conflict retain talent
helpfulness

LEADERSHIP BLUEPRINT | 5
 Develop
accountable
people
Research suggests
that when we feel a
sense of ownership
over our work, it not
only influences our
feelings toward our
organization; it actually
makes us more helpful
and generous toward
others as well. This
stems from thinking
more broadly about
our impact on those
around us—rather than
just our own output.

51%
of respondents in a Gallup survey of U.S. workers
found that less than one-third were engaged in
their jobs. LEADERSHIP BLUEPRINT | 6
Great organizational cultures are made up of people who
take accountability, focus on results rather than blame,
productively navigate tension, and most importantly,
recognize how their actions affect their peers.

Developing accountable
employees is about creating
a culture of ownership and
responsibility. When your team
members feel that they have
a personal stake in their work, Examples of common
they’re more likely to innovate,
look for creative solutions to self-focused behaviors
problems, and go above and
beyond because they genuinely
care about their work.
Emailing a colleague with a
When it comes down to it, the last minute request, expecting
root cause of most workplace they’ll drop everything to
challenges is that people accommodate it
naturally focus on themselves—
prioritizing their own needs and
Looking the other way when a
challenges without thinking
problem arises, hoping someone
about other team members’
else will handle the issue
goals, objectives, or obstacles.
There are a countless number of
examples of this. Finding allies to take “your
side” in a conflict with another
None of the examples on the coworker, justifying your own
right are inherently “bad” but stance in a disagreement
great organizational cultures
aren’t made up of employees
who “aren’t bad.” They’re
made up of people who take
accountability, focus on results
rather than blame, productively
navigate tension, and most
importantly, recognize how their
actions affect their peers.

LEADERSHIP BLUEPRINT | 7
Fostering accountable employees
As a leader, there are a few things you can do to foster a sense of accountability in your employees.
This will serve as the foundation for the rest of the transformation process.

1 Set clear expectations and goals

Having a clear set of goals in place (and making sure

everyone knows about them) forms the foundation for a
high-performing team. Once everyone understands what
they’re responsible for, it leaves less room for playing “hot
potato” with tasks at hand.

When each member of your team knows what you—as a

collective—are striving for, it helps everyone focus on their
specific pieces that puzzle and motivates them to be more
productive when they know exactly how they’re impacting
the final outcome.

2 Turn mistakes into learning experiences

Reframing failure as a learning experience helps foster a

growth mindset within your organization. This mindset
promotes resilience, adaptability, and a willingness
to embrace challenges, all of which are essential for
innovation and progress.

You’ll notice that the next generation of employees isn’t

afraid to fail. An EY study revealed that 80% of Gen Z-ers
said that embracing failure at work can help them be
more innovative. As a leader, it also helps to get curious
about how mistakes happen in the first place. Oftentimes,
asking questions about how an error occurred reveals
gaps in training or processes—that you can help resolve.

LEADERSHIP BLUEPRINT | 8
Fostering accountable employees

Have performance check-ins often

3
Having frequent performance check-ins is a crucial
practice for maintaining a productive, engaged,
and aligned workforce. Employee engagement is
actually strongly correlated to review cycle frequency,
so the more often you’re able to have performance
conversations, the better.

Encourage employees to schedule time with their

managers regularly (monthly is a great cadence!) to
gauge their performance. We recommend using a
template like Arbinger’s 3A+ Development Framework
that allows both managers and employees to evaluate
effort and impact, rather than just outcomes.

4
Ensure everyone understands
their impact

Openly communicating the impact of individual

contributions builds transparency and trust within your
organization. Right now, only 21% of U.S. employees
trust their leadership, and opening up conversations
about effort and impact at an organizational level helps
to rebuild the trust that so many organizations are
currently struggling with.

LEADERSHIP BLUEPRINT | 9
 TRY THIS:

Impact Check-In tool

Use this tool to guide you as you check in
with those you affect—your customers, your
team members, and your peers. It’s a good
idea to establish regular, quick check-ins
with these people at an agreed-upon
cadence. Leadership should try this first
and serve as an example for the rest of
the organization.

Download fillable
form template

Download

How to use it

1 Identify a person you impact. 4 Consider possible adjustments.

Identify ways you might improve
your helpfulness to this person.
2 Write the date of the check-in
meeting. (Remember, these should
happen regularly!) 5 Meet with this person and share
the thoughts you identified in
columns 2 and 3.
3 Identify ways you haven’t been
helpful. Think about how you may
have made this person’s job harder 6 Get the person’s feedback about
or failed to make it easier when you what you have shared with them.
could have. Agree on a plan of action.

LEADERSHIP BLUEPRINT | 10
Foster a
culture of
helpfulness
Collaboration requires a
level of self-awareness
that is only possible
when employees
feel empowered and
accountable for their
work. As a leader, it’s
your job to foster a
culture of helpfulness by
encouraging employees to
create more meaningful
connections with those
around them, and
empowering them to
work together in more
productive and
creative ways.

LEADERSHIP BLUEPRINT | 11
A culture of helpfulness involves
more than just superficial
A culture of helpfulness
cooperation—it’s about
nurturing an environment
begins with:
where employees genuinely
care about each other’s
Clearly defined roles
success and well-being. These
When employees know exactly what
connections are built on trust
they’re responsible for—and where
and understanding, promoting
their purview starts and ends—they’re
open communication and
better equipped and more likely to offer
reducing misunderstandings.
support regarding an area that they own.

We’ll talk more about

establishing relationships in a Lead by example
few sections, but by ingraining Managers who put themselves in service
employees with a willingness of their teams—in other words, practice
to be helpful, you’re setting the servant leadership—boost employee
groundwork for much more morale and yield higher profits for
fruitful working relationships. their organizations. When managing a
Teammates will be much workforce of accountable employees,
more likely to reach out for you won’t have to micromanage team
assistance, share ideas, and members to complete tasks. Your
work together effectively. This employees can be trusted to get their
collaborative spirit not only work done and can come to you as a
leads to more creative solutions helpful resource for clearing roadblocks
to problems, but also breaks or navigating big decisions.
down silos, allowing diverse
skills, and perspectives to
Offer employee mentorship
come together.
Mentorship often leads to the
development of long-term professional
relationships, which helps nurture a
A culture of helpfulness sense of community at work. Mentors
can help coach junior employees
involves more than just on navigating team dynamics and
superficial cooperation— promoting empathy. Plus, mentees
gain confidence through mentorship,
it’s about nurturing
enabling them to offer assistance to
an environment where others in their journey. As employees
employees genuinely care become more self-assured, they’re
more likely to step forward and provide
about each other’s success guidance, advice, or assistance to
and well-being. colleagues who need help.

LEADERSHIP BLUEPRINT | 12
 TRY THIS:

Meet to Give tool

The Meet to Give tool encourages cooperative
thinking and mutual support within teams.
It’s a proactive way of identifying others’
goals and understanding exactly how you
can help them. It can be used for regular
check-ins between teams, new working
relationships, or providing targeted aid
in a particular area or situation.

Download fillable
form template

Download

How to use it

List three individuals or groups 4 Develop one to three practical steps

1
affected by your work. (You can that you can take to assist these
also adapt this approach to larger individuals or groups. This could
audiences like communities, involve refining your approach,
classrooms, or jurisdictions.) sharing resources more effectively,
offering guidance, or other supportive
For each person or group, take the actions.
2
time to grasp their primary objectives.
Gain insights into their goals within 5 Organize meetings with the identified
their roles. individuals or groups to share the
observations you’ve made in steps 2 to
Reflect on instances where your 4. Engage in open discussions, gather
3
actions might have posed challenges input, and collaboratively create a
or setbacks for them. Be honest about clear action plan aligned with their
any hindrances or oversights. goals and your supportive efforts.

LEADERSHIP BLUEPRINT | 13
Nurture
employee
engagement
Your people are your
organization’s most
important asset. Without
engaged employees
who hold themselves
accountable and express
helpfulness towards
others, you’re probably
going to find completing
even the most simple
of tasks a challenge. For
this reason, nurturing
employee engagement
is critical to your
organization’s culture
and cohesion.

LEADERSHIP BLUEPRINT | 14
 FIGURE 2: Engagement Comparison

Disengaged Engaged
While engagement employee employee
can sometimes be
a difficult metric
to quantify, you’re Runs from responsibility Takes on responsibilities

usually able to tell

Easily loses focus Goal-oriented and focused
if an employee
is engaged or
not. Let’s start
Avoids working with others
vs. Collaborative and helpful

this chapter by Complains often (or not at all) Provides creative solutions
identifying some of
the most common Underperforming Produces high-quality work
differences exhibited
Lack of motivation to Motivates themselves and
by disengaged and complete tasks or goals others to achieve goals
engaged employees
Isolates themself from
Connects with teammates
(see figure 2). social events

Statistically, disengaged employees have an where everyone feels connected to larger

18% lower productivity rate, and on average organizational initiatives and their part
cost a company $3,400 for every $10,000 the in them. Plus, employees who feel like
employee makes. So naturally, every leader their work matters are much more likely
wants to strive for an engaged workforce. to innovate, outperform, and stick around
But it’s about more than the bottom for the long haul—which in turn creates a
line, it’s about fostering an environment better workplace for all.

LEADERSHIP BLUEPRINT | 15
Calculate the cost of employee disengagement on your
team using this formula:

Step 1: [ Your employee headcount] x 17.2%

= Number of disengaged employees
(17.2% is the average
disengagement rate
Step 2:  [ Median annual salary] x [Number of according to Gallup)

disengaged employees]
= [Annual cost per disengaged employee]

Proven ways to boost

engagement at work
1. Remember your colleagues are people first
One of the most impactful ways to make your employees feel like they
matter and belong is by treating them like people. It’s crucial for leaders to
remember that their colleagues are people outside of work, and recognize
the multifaceted lives of employees beyond their job titles. Some ways
to do this effectively are promoting work-life balance by offering flexible
scheduling, understanding personal commitments, celebrating significant
life events, providing mental health resources, and creating spaces for open
dialogue about non-work topics. These efforts not only acknowledge the
diverse lives and experiences of employees, but also contribute to a more
supportive work environment that values each individual.

2. Show appreciation
Showing appreciation is another important way to foster a positive and
motivated work environment. Research indicates that 69% of employees
would work harder if they felt their efforts were better recognized. For that
reason, employee appreciation significantly boosts engagement, which
leads to increased productivity and job satisfaction. When employees feel
valued and appreciated, their morale and sense of belonging improve,
which strengthens their commitment to your organization. You can
demonstrate appreciation by providing regular feedback, recognizing
accomplishments publicly, and instituting employee recognition programs.

LEADERSHIP BLUEPRINT | 16
3. Ask for feedback (and listen)
Seeking employee feedback demonstrates your commitment to creating an
inclusive workplace where everyone feels like they matter. When employees
perceive that their opinions are valued and their feedback leads to meaningful
changes, their engagement and morale soar. In fact, companies with effective
feedback systems have a 14.9% lower turnover rate than those who don’t.

4. Foster psychological safety

Just as important as asking for feedback is creating an environment where
employees feel safe to share it. Psychological safety refers to the shared belief
that anyone can express their ideas, take risks, and voice concerns without
fear of retribution or negative consequences. When employees feel safe to
share their thoughts and perspectives, it encourages collaboration, innovation,
and creative problem-solving. That, in turn, leads to improved team dynamics,
increased employee engagement, higher job satisfaction, and a willingness to
learn from mistakes.

5. Provide ongoing coaching and training

Coaching and training play a pivotal role in enhancing employee engagement
by fostering skill development, personal growth, and a sense of investment
in one’s career. Research shows that 40% of employees who don’t
receive effective job training will leave their positions within the first year,
underscoring the positive impact of training on engagement and retention.
Employers can provide coaching through a number of different avenues, such
as one-on-one mentoring sessions, workshops, online courses, and peer-
to-peer learning initiatives. Additionally, offering opportunities for feedback
and regular performance discussions aids in the continuous development of
employees, strengthening their connection to their roles and the organization
as a whole.

6. Live your mission and values

Communicating your organization’s mission and values drives employee
engagement by providing a clear sense of purpose and direction for everyone.
When employees understand the organization’s overarching goals and core
values, they feel more connected to their work and the company, which in
turn leads to increased motivation and job satisfaction. Millennial and Gen Z
employees indeed tend to place a greater emphasis on a company’s social
responsibility initiatives. Considering that by 2025, millennials will make up
75% of the workforce, it should be a top priority for your leadership team
to not only communicate your values to your employees and customers,
but also make sure that you’re walking your talk when it comes to social
responsibility. Even if your business isn’t a mission-driven organization,
making commitments like charitable donations, participating in fairtrade, or
improving labor policies have a massive effect on employee loyalty.

LEADERSHIP BLUEPRINT | 17
7. Equip your team
Making sure that employees have the necessary tools, equipment,
and training to perform their jobs effectively is critical—it directly
impacts employee productivity and job satisfaction. When employees
feel well-equipped, they’re better positioned to meet (and exceed)
their responsibilities, leading to an increased sense of confidence and
achievement that ultimately improves their engagement levels. A recent
survey of 1,857 U.S. employees found that almost every employee (96%)
said they are dissatisfied with the tools they have been equipped with to
manage work. As a leader, ensuring your team has the right tools they need
to succeed is a highly important factor in their day-to-day engagement.

8. Make time to get social

Organizing social time for employees is crucial to maintaining strong
connections within a team. Events like team lunches, game nights, retreats,
and club meetings provide opportunities for team members to interact in
a relaxed and informal setting, fostering camaraderie and building trust. It’s
been proven that socializing as a team improves communication patterns
by 50%. When employees feel connected, they’re much more likely to
collaborate well, help each other, and participate at work.

9. Demonstrate your trust

Demonstrating trust is important for leaders as it cultivates an environment
of empowerment, collaboration, and confidence. When leaders exhibit
trust in their employees, it boosts a sense of ownership and responsibility,
encouraging individuals to take initiative and contribute their best efforts.
When there’s trust at work, employees are 260% more motivated to work,
have 41% lower rates of absenteeism, and are 50% less likely to look for
another job.

10. Be transparent
When leadership teams prioritize transparency with employees, it
establishes a culture of open communication and mutual respect. In fact,
organizations with transparent communication practices experience 47%
higher levels of employee engagement. Empowering team members with
information that’s relevant to their jobs and performance makes them feel
more valued and connected to the organization’s goals and decisions.

LEADERSHIP BLUEPRINT | 18
 GET THIS:

A cultural
competitive advantage
Established in 1982 in San
Francisco, Pet Food Express
carved a niche in the pet supply
industry by blending cutting-
edge pet nutrition with top-tier
employee training and customer
service. This approach propelled
their growth from 6 to 63 stores
by 2017, cementing their position
as an industry leader.

However, Pet Food Express

faced stiff competition from big
box stores that had come to
dominate the national market
through sheer size, brand
recognition, and aggressive
advertising and sales. Considering
these market realities, company
leaders became convinced
that their primary competitive
advantage was the unique culture of Pet Though fun, lively, and warm, the
Food Express—the special way that their company culture is anything but soft.
employees work together and serve their A central feature of that culture is the
customers. If they were to continue growing sharing of straightforward and honest
profitably, they needed to prioritize and feedback, stemming from a genuine
preserve their culture. desire to help employees grow. As Amy
Vargas, a district manager, noted, “Now
Pet Food Express worked with Arbinger to that I have the tools, I don’t hesitate
scale its team performance management to give the truth.” This helpful honesty
philosophy. Now, leaders give each and directness is the foundation of the
employee the decision-making authority way Petfood Express approaches team
to do what is right for fellow team performance management and is at
members as well as make decisions the heart of the trust that exists at every
that impact customers. level of the company.

LEADERSHIP BLUEPRINT | 19
Transform
conflict
Conflict at work can
have far-reaching
implications, affecting
not only individual well-
being but also team
dynamics and overall
productivity. When left
unresolved, workplace
conflicts can lead to
increased stress, reduced
job satisfaction, and
diminished motivation
among employees.

LEADERSHIP BLUEPRINT | 20
Consider these
statistics about work
conflict before we
head into this chapter:

85% of US employees have

85% some level of conflict
at work

Managers spend around

6 hours per week (roughly
15%
15% of their time) solving
work conflicts

56% of employees who

experienced conflict at
56% work reported that it led
them to stress, anxiety
and/or depression

Now, the key as a leader is not to avoid conflict altogether. It’s to find
ways to productively work through conflict and transform it into better
communication and cohesion. We’ve placed conflict as step four in
this guide because it’s a lot easier to productively navigate when your
employees are already accountable, helpful, and engaged.

LEADERSHIP BLUEPRINT | 21
While there are many different types of conflict,
and there’s no one-size-fits-all solution, we have
the power to look at most workplace conflicts
differently when we reframe our perspectives.

Conflict and employee mindset While we complain about the mistreatment

we’re receiving, that mistreatment proves
To better handle challenges and conflict, to ourselves that we’ve been right about our
we must reframe our mindsets to better colleague. In this sense, we end up valuing
understand our own justifications and problems more than solutions and conflict
motivations. While there are many different more than peace, which isn’t a productive
types of conflict, and there’s no one-size- outcome for anyone.
fits-all solution, we have the power to look
at most workplace conflicts differently
when we reframe our perspectives.

Oftentimes, we forget that our coworkers

are people too—with complex layers of
emotions and experiences of their own.
When someone is being difficult to work
with, it’s easy for us to forget that they’re a
Questions to ask when
person too. On top of this, we sometimes faced with a conflict or
a difficult coworker
even start viewing people as obstacles (like
obstacles to our own success, or obstacles
between us and completing a project).

What is it like to be around me

When we forget to see the humanity
in others, we have a tendency to create 1 when I feel this way?
negative narratives about them in our
heads, which we feel justifies our negative
behaviors towards them. This, in turn,
invites them to respond poorly to us, 2 What are my reactions or responses
when I am feeling frustrated/
which we then use to justify our own part stressed/overwhelmed/ignored/etc.?
in the conflict.

The worse a colleague treats us as a

response to our own behaviors, the more 3 What is a possible solution to
changing my mindset when these
our negative views will seem to be justified. feelings occur?

LEADERSHIP BLUEPRINT | 22
Oftentimes, our responses to
conflict perpetuate the conflict
itself. When we choose to
look at situations objectively,
rather than with emotion,
we can diffuse tension and
use contentious issues as
opportunities to understand
what others are facing, unearth
broken processes, and use them
as chances to grow.

LEADERSHIP BLUEPRINT | 23
 TRY THIS:

Focus on Facts tool

Use this tool before engaging in potentially
highly charged communications in order to
separate reality from personal interpretation.
This will help you to stay focused on facts,
which will invite less resistance in others and
promote more productive conversations.

Download fillable
form template

Download

How to use it

List things the other person does 3 If you weren’t angry, frustrated, or
1
that bother you—things you wish upset, how might you see this person
they would quit doing. (Make sure differently?
you are only listing things they
are doing and are not expressing When communicating, recognize
4
judgments about them.) that the items you’ve listed in Step 2
are merely your own interpretations.
Identify how you see the other Stay focused on the items you’ve
2
person when they are doing these listed in Step 1, and stay open to
things. (These ideas you’ve listed are alternative interpretations you might
interpretations—your own views of have if you were looking at the
another’s actions.) situation from the outside.

LEADERSHIP BLUEPRINT | 24
Build
relationships
When we think about
high-performing
teams, things like long
hours, hustle culture,
and pressure cooker
environments typically
come to mind. But a
true high-performing
team puts a premium
on authenticity
and interpersonal
relationships, knowing
that building strong
connections with others
is the key to achieving
goals together.

LEADERSHIP BLUEPRINT | 25
Rather than clocking overtime and burning out, positive relationships can help us maximize the
time we have at work to make us significantly more productive.

Think back about how all of the previous sections have been laying the groundwork for this
important step. Building relationships is a lot easier when you have the right attitudes and tools
to do so.

Ways to enhance
relationships at work
Express appreciation

The act of expressing appreciation has an incredible TRY THIS:

impact on workplace relationships, nurturing a List a colleague’s five best

culture of mutual respect and camaraderie. When qualities. Ask: What might I
teammates regularly acknowledge and value do to express appreciation for
each other's contributions, it naturally enhances these qualities? Is there a way
collaboration and cooperation between colleagues. to show I notice them and
Studies show that 78% of employees who feel appreciate them? Is there
recognized by their peers are more motivated to anything I could do right now
work harder, underlining the role that appreciation or in the next day or so?
plays in collaboration.

Make a colleague’s day easier

Going out of our way to make someone's job easier TRY THIS:

not only fosters a true sense of teamwork, but also Try this activity: Identify a
builds a foundation of trust and support. When colleague’s three biggest
colleagues collaborate and offer assistance to pressures. Ask: What might
others, it helps feed into a culture of reciprocity and I do to help relieve some
shared success. Small acts of kindness can enhance of those pressures? What
communication, boost morale, and contribute to a might I stop doing? Is there
more harmonious work environment. anything I could do right now
or in the next day or so?

LEADERSHIP BLUEPRINT | 26
Ways to enhance
relationships at work
Hold yourself accountable

Holding oneself accountable at work demonstrates TRY THIS:

integrity, reliability, and a commitment to shared Try this activity: Identify how
goals. When people take responsibility for their we betray ourselves towards
actions and commitments, it fosters an environment a colleague. Ask: Are there
of trust and credibility. Trust in accountable ways I don’t really do my
individuals stems from the consistent alignment best? How do I justify myself
between their words and actions, showcasing their when I fail in this way? What
reliability and dedication. would I do differently if I
weren’t betraying myself and
blaming? What could I do
today or in the next day or so?

When people take responsibility for their actions

and commitments, it fosters an environment of
trust and credibility.
LEADERSHIP BLUEPRINT | 27
 GET THIS:

Accelerated collaboration
through workplace culture
Founded in 2010 by Samo and
Iza Login, Outfit7 aimed to bring
enjoyment to all through its software
development. The company’s
workplace culture prioritized
fun, respect, and collaboration,
showcased by their successful app
Talking Tom launched in June 2010,
bringing in an impressive 300 million
downloads within 19 months. By early
2013, Outfit7 expanded from 8 to
45 employees across global offices,
driven by the success of Talking Tom
and the “Talking Friends” franchise.
However, this growth posed a
challenge to maintaining their
unique culture. Samo and Iza aimed
to preserve their distinct culture as
they continued to expand, though
articulating this vision for scalability
was proving difficult.

Outfit7 brought in an Arbinger to one another more objectively. They

facilitator to conduct training with its are more willing to reevaluate their
leadership team. Many members of the perceptions and conclusions, which
team were initially skeptical about the need allows them to see issues differently,
to work differently. However, the session overcome their differences with each
helped them realize ways their mindset was other, and focus on results.
contributing to the growing cracks within
the company culture. During the training, According to Iza, Outfit7 employees
several team members were able to resolve previously tended to focus solely on
lingering disagreements, thereby laying the their own tasks and didn’t think about
groundwork for more collaborative work how their work was affecting others.
going forward. However, after working with Arbinger
to shift their focus to others, employees
As a result of the training, Outfit7’s leaders across the company regularly look for
report having an increased capacity to listen opportunities to help their colleagues.

LEADERSHIP BLUEPRINT | 28
Recruit
and retain
top talent
Your organization’s
people are the heart of
its success. They are the
driving force behind
the realization of your
mission. Having the right
people in your corner is
crucial to achieving the
results you desire—but
attaining and retaining
them is something that’s
easier said than done.

LEADERSHIP BLUEPRINT | 29
Ways to improve employee retention
We know that compensation, work-life balance, and flexible environments are obvious ways for
employers to stay competitive. Outside of those, here are five ways you can improve retention at
your organization:

1 Foster self awareness

Cultivating an attrition-proof culture starts with

empowering employees to find a new awareness of
themselves and others. When employees have a deeper
understanding of their strengths, areas for development,
and alignment with your organization’s values and goals,
they can better identify their own career aspirations and
how these fit within the organization’s trajectory. This
clarity not only promotes a sense of purpose, but also
opens up the floor to conversations between employees
and their managers about growth opportunities and skill
development. Self-aware employees proactively address
challenges, seek personalized development paths, and are
more likely to find fulfillment within their roles, leading
to higher job satisfaction and a stronger commitment to
staying with your organization.

2 Provide effective manager training

You’ve heard it before: employees don’t quit jobs, they

quit their bosses. In fact, managers account for at least
70% of the variance in employee engagement. A manager
can make or break an employee’s experience at your
organization, so it’s important to make sure your people
leaders are well-equipped to handle challenges, motivate
employees, and achieve goals.

LEADERSHIP BLUEPRINT | 30
Ways to improve employee retention

Create an inclusive work environment

An inclusive culture encourages diverse perspectives,

3
which in turn drives innovation and creative problem-
solving. Employees who feel they can express themselves
authentically and contribute without fear of bias are
more likely to build long-term relationships with the
organization. In other words, you want employees
to feel psychologically safe. By ensuring that every
employee’s voice is heard and their unique contributions
acknowledged, an inclusive and psychologically safe
work environment promotes a deepened connection to
the company’s mission, values, and fellow colleagues,
ultimately reducing turnover and enhancing overall
retention rates.

Show employees how their work

impacts others 4
When individuals understand the broader impact of their
contributions on colleagues, clients, and the organization
as a whole, it nurtures a deeper connection to their work.
This connection, rooted in a sense of meaning and value,
enhances job satisfaction and motivation. Employees
who can tangibly see the positive effects of their efforts
are more likely to develop a stronger commitment to
their roles and the organization, ultimately reducing the
likelihood of turnover.

LEADERSHIP BLUEPRINT | 31
 GET THIS: Increased enrollment and retention rates

Accelerated collaboration
through workplace culture
Dr. Reddy’s Foundation,
committed to supporting
India’s underprivileged youth in
achieving sustainable livelihoods,
implemented a transformative
strategy to enhance enrollment
and retention through
organizational culture change.
The foundation’s LABS program
initially faced limitations due to
financial constraints, but to meet
escalating demand, it transitioned
to a sustainable model where
participants contributed a
nominal fee.

However, facing internal friction

and diminishing program quality,
the foundation struggled with
enrollment. To address this, the
foundation invested heavily in
recruitment, at the expense of
program quality. Instructors faced pressure By addressing interpersonal dynamics,
to meet enrollment quotas, leading to redefining goals, and enhancing
compromised standards. This approach, feedback loops, the foundation
coupled with poor communication and transformed its approach. Consequently,
student grievances, further deteriorated interdepartmental conflicts diminished,
enrollment and retention rates. complaints decreased, and enrollment
and retention dramatically improved.
The solution involved instilling a mindset The organization’s capacity to make
shift across the organization to improve bold decisions increased, exemplified
team performance. The foundation worked by reduced enrollment fees and
with Arbinger consultants to facilitate enhanced operational efficiency. The
leadership alignment, self-awareness, case underscores how nurturing a
and self-management. A paradigm shift culture of accountability, empathy, and a
occurred, focusing on accountability, mindset focused on others can facilitate
stakeholder-centered objectives, and an enrollment and retention while enabling
open dialogue framework. an organization’s sustainable growth.

LEADERSHIP BLUEPRINT | 32
Take
corrective
action
Taking corrective
action ensures that
cultural transformation
isn’t just aspirational,
it makes sure that all
steps highlighted in
this guide are tangibly
realized in your
employees’ everyday
interactions. Corrections
aren’t a punishment,
they demonstrate
your organization’s
commitment to
upholding a standard,
which in turn influences
employee behavior
and attitudes.

LEADERSHIP BLUEPRINT | 33
The following are some situations that
call for corrective action, and how to
handle them.

When people fail to do their best When people don’t know

the standard
Sometimes people understand the
performance standard but fail to meet it. When people are first learning the
You might take the following approach in expectations of their job or our specific
such situations: expectations as their leader, sometimes it’s
sufficient simply to inform them that they
“You’re good at many things. In haven’t met those expectations. Depending
particular, as you know, I appreciate on the situation, you might say something
your work in _____________. But like the following:
lately you haven’t been as good at
_____________. Is there something I “If we’re going to achieve our team
don’t know about that’s creating result, your personal performance
a problem?” (Discuss this as with your customers needs to
appropriate and, if necessary, take improve. Specifically, it needs to be
action to help.) Then say: “I’d like different in this way: _____________.
to meet with you next __________ Do you understand why? Will you be
and have you tell me how you will able to do it that way from now on?”
correct this going forward. Will that (Or: “Would you be able to redo it this
work for you?” way by next Thursday?”)

OR
New or mild conduct problems
When unacceptable behavior (such “In order to achieve what we need
as uncooperativeness or disrespectful to in this meeting, it’s important for
treatment) appears for the first time, or everyone to be on time. Crises can
when it is relatively mild in form, we can make you late, of course, but in the
help people hold themselves accountable absence of those, we all need to be
simply by reminding them of what is on time. Is everyone on board with
required. A simple non-blaming statement that? Thanks.”
is usually sufficient.

“We can’t have that kind of behavior.

We need you to do better. Do you
understand why?”

LEADERSHIP BLUEPRINT | 34
Persistent conduct problems “In terms of what we’re trying to accomplish
in everyone’s ability to work together, you’re
When unacceptable behavior is
not progressing fast enough. I want you
ongoing (for example, when appropriate
to carefully identify the problems you’re
reminders have not been sufficient), we
creating and what you’re going to do
must (1) get people’s clear attention, and
about them. When you feel that you’re fully
(2) give them the responsibility to solve
prepared to discuss that, schedule a time to
the problem. Meet with the person and
meet with me. Then we’ll go from there. Will
say something like this:
that work for you?”

Hard
FIGURE 3: Hard & Soft Behaviors

and soft Soft Hard

behaviors behaviors behaviors

Seeking staff involvement in Focusing only on the task

As a leader, one primary important decisions at hand
responsibility is to help
Giving praise Rejecting a request
team members grow.
In fact, if we truly honor Giving someone a good grade
vs. Firing someone
our team members and
see them as people, Being flexible Giving someone a poor grade

we naturally want to Setting and expecting

Compromising
help them evolve and high standards

progress. This requires a Saying “yes” Not compromising

combination of hard and
Avoiding telling truths that
soft behaviors. might hurt others’ feelings
“Telling it like it is”

Figure 3 can help us to

discern the two.

If we only exhibit soft behaviors toward our team members, we could be doing more harm than
good. We may fail to give necessary feedback. We may fail to set challenging goals that could
help them develop their skills.

In fact, growth and development within our teams often require hard behaviors from leadership.
Setting challenging goals, demanding high standards, and even giving difficult feedback are
often just what our teams need to step outside their comfort zones. As we exercise these hard
behaviors, we help our team members develop to their full potential.

LEADERSHIP BLUEPRINT | 35
 TRY THIS:

Apply the Influence

Pyramid tool
Use this tool as a structure to organize all of
your leadership efforts. This tool is particularly
helpful whenever you would like to influence
change in another person or group.

While filling out the pyramid:

Work bottom up: Most time and effort should
be spent at the lower levels of the pyramid.

When stuck, go lower: The solution to a

problem at one level of the pyramid is
always below that level.

Mindset matters most: Ultimately, your

effectiveness at each level of the
pyramid depends on the lowest level
of the pyramid—your mindset.

Download fillable Download

form template

How to use it

1 Identify a situation in which you’d 3 Brainstorm things you might do in

like to improve your influence to these and the other levels of the
advance change. pyramid to improve the situation.
Circle the things you will do in the
2 Identify the levels of the pyramid next 30 days.
at which you have been weakest in
this situation.

LEADERSHIP BLUEPRINT | 36
MEASURING SUCCESS:

The metrics
that matter
Leadership training
programs are valuable
investments for
organizations that
want to develop their
talent, improve their
performance, and
enhance their culture.

LEADERSHIP BLUEPRINT | 37
Measuring the impact of your work
allows you to see how far you’ve come.
It also helps you focus on the work that
still remains to be done.

As you invest in leadership development

it is important to build a success plan
to connect training to strategic goals.
The goals and priorities in leadership Organizational health
development tend to shift based on the
needs of the business so it is critical that
metrics you can measure
you’re measuring the impact and ROI
(return on investment) of these programs
to ensure that they are aligned with your Trust
strategic goals and needs. If you can’t How much confidence do employees
measure the impact of your work, then you have in the actions of the organization,
won’t know how far you’ve come and the its leaders, and their peers?
work that remains.
Collaboration
Success metrics vary by industry, but here Do leaders collaborate and promote
are some general guidelines for measuring collaboration or are there silos,
both organizational health metrics and the separate or redundant efforts,
KPIs (key performance indicators) that track and stagnancy?
the success of your efforts:

Alignment
On the right you’ll find questions to
Does your executive team share a
consider that will help you understand
common goal? Do differences of
the impact of change on the organization.
opinion paralyze growth?
These metrics are typically obtained
through periodic surveys and individual or
group interviews. We recommend getting Communications
a pulse check before, during, and after How do leaders promote inter- and
implementing the steps in this guide for a intradepartmental communications?
true indicator of change. How well-informed and connected are
people across the organization?

LEADERSHIP BLUEPRINT | 38
 There is a
Key performance indicators huge benefit to
investing in the
KPIs are quantifiable measures used to evaluate the success
of an organization, employee, or team in meeting objectives
development of
for performance. While some KPIs like job satisfaction or your leaders and
psychological safety apply to all roles and industries,
it’s important
We’ve compiled this list of possible KPIs you might like to you understand
start tracking in order to evaluate your transformation efforts.
how to measure
All of these outcomes are tied to your organizational culture.
the impact of that
Select the ones outlined in your success plan that apply to investment on
your organization and create a spreadsheet to keep record of
them on a regular cadence. organizational
growth.

KPIs to consider tracking

Revenue growth  ariance vs. timeline for

V Drug seizures
implementation of
Operating income margins new systems Specific attitudinal measures

Capital efficiency Turnover and talent retention Psychological safety

Operational efficiency Employee engagement and Affective organizational

satisfaction score commitment
Inventory levels
Employee trust in leadership Satisfaction with empowerment
Working capital levels
Liability claims filed Perceived management
Input costs (related to
vendor relationships) Regulatory investigations Support/advocacy

Budget reduction Quality of care measures Other objective orientation

Job satisfaction Returning elective treatment Perspective taking

patients
Variance vs. budget for Affect (mood)
implementation of Sick days taken by employees
new systems
Weapons seizures

LEADERSHIP BLUEPRINT | 39
Calculating the ROI of your leadership training program is simple. The KPIs you’re measuring the
program against have a monetary value attached such as increased productivity, performance,
retention, or customer satisfaction. You must compare the monetary value of the KPIs to the
expenses that the program incurred, such as training, workshops, materials, travel, or time.

There is a huge benefit

To calculate the ROI, you can use
to investing in the
this formula:
development of your
leaders and it’s important
ROI = (KPI value - expenses) / expenses x 100%.
you understand how
For example, if your program cost $25,000 and generated to measure the impact
$75,000 in benefits, your ROI would be 200%. of that investment on
organizational growth.

LEADERSHIP BLUEPRINT | 40
Conclusion
The journey to culture
transformation isn’t
necessarily a short
or easy one, but it’s
the best investment
you can make for
your employees and
your organization
as a whole. Simple
shifts in mindset
can completely alter
the way teams work
together and serve
your customers
and communities.

LEADERSHIP BLUEPRINT | 41
When you commit to making the investment in
your leaders and equip them with the right tools
you’ll see the transformation take place.

Just as negative behaviors and attitudes the cultivation of leaders who know how
can spread throughout your organization, to bring out the best in others and build
the same is true for helpful behaviors and highly-engaged and productive teams.
outward-focused mindsets. Particularly Remember that sustainable change is an
when they start with leadership and ripple ongoing initiative—and not something
throughout the organization. that happens overnight. In order to create
lasting impact, we must make gold
While it may seem like there’s a lot of work standard leadership a daily practice.
to do, there’s no better time to start than
today. When you commit to making the Start working through the steps in this
investment in your leaders and equip them guide and create a sustainment plan that
with the right tools and mindset you’ll see your entire leadership team is bought
the transformation take place. Without into. After all, culture transformation starts
fail, we’ve seen this investment result in at the top.

LEADERSHIP BLUEPRINT | 42
Thousands of
organizations and
leaders see results like...

A 270% increase in top-line revenue

of a government contractor

43% more trust in leaders at a major

metropolitan hospital

65% more product shipped by a

large medical supplier during 6
months (with no increase in staffing)
Want to learn more about
working with Arbinger?

Book a consultation
The steps in this guide are
inspired by Arbinger’s Outward
Leadership solution.
About
Arbinger
The Arbinger Institute
helps leaders transform
their cultures by enabling
the shift in mindset that
leads to exceptional
results. Whether you’re
interested in leadership
development, building a
high-performing team, or
transforming your entire
organization, we’ll show
you how to create the
mindset transformation
that is the key to driving
lasting change.

LEADERSHIP BLUEPRINT | 44