Vertical Development: Culture Always Wins

“Culture eats strategy for breakfast." – Peter Drucker 

In this complex business environment, organizations face the challenge of not only crafting effective strategies but also ensuring that their leadership can implement these strategies successfully. Vertical development, a concept that emphasizes evolving leadership mindsets, is emerging as a crucial component in this equation. 

Research indicates that while strategies are important, the underlying culture of an organization ultimately determines the success of those strategies. 

This article explores the principles of vertical development and its significance in fostering a leadership culture that can adapt to and thrive in a rapidly changing landscape.

Understanding Vertical Development

Vertical development refers to the process of evolving one's thinking and perspective to navigate complex challenges more effectively. Unlike horizontal development, which focuses on acquiring new skills and competencies, vertical development is about transforming how leaders perceive and interpret their environments. This shift allows leaders to operate from a higher level of complexity, enabling them to tackle challenges with greater insight and adaptability.

Julie Chesley, Terri Egan, and Suzanne Lahl, researchers in this domain, emphasize that vertical development is essential for leaders to cultivate a mindset that supports strategic initiatives. Their work highlights that organizations often waste resources on strategic planning without addressing the cultural beliefs and mindsets that hinder effective implementation. As they put it, “If you want best practices, you need best beliefs. Beliefs drive practices. Beliefs are embedded in cultures. And culture always wins”.

The Role of Culture in Leadership Development

The interplay between culture and strategy is critical. An organization's culture can either facilitate or obstruct the execution of strategic plans. For instance, a culture that encourages openness, collaboration, and risk-taking will likely support innovative strategies, while a culture rooted in fear and resistance to change will stifle progress. 

The Center for Creative Leadership (CCL) asserts that a strategic initiative can only succeed when the leadership culture is aligned with it. They propose that leaders must engage in vertical development to cultivate the complex thinking required to navigate today’s multifaceted challenges. This involves not only examining existing cultural beliefs but also fostering a mindset that embraces adaptability and collective problem-solving.

Practical Steps for Implementing Vertical Development

Organizations can take several practical steps to foster vertical development among their leaders:

1. Assess Current Developmental Levels: Understanding where leaders stand in their developmental journey is crucial. Tools like the Leadership Circle Profile and the Vertical Mindset Indicator (VMI) can provide valuable insights.

2. Encourage Reflective Practices: Regular reflection allows leaders to challenge their assumptions and grow. Techniques such as journaling, peer discussions, and coaching sessions can facilitate this process.

3. Provide Challenging Experiences: Leaders should be encouraged to step outside their comfort zones. This can include tackling complex problems or leading diverse teams, which promotes growth through real-world challenges.

4. Foster a Learning Culture: Creating an environment that values continuous learning is essential. This can involve structured after-action reviews, mentoring, and knowledge-sharing initiatives.

5. Invest in Coaching: Experienced coaches who understand vertical development can guide leaders through their growth journeys, helping them to expand their perspectives and capabilities.

The Benefits of Vertical Developmenty

The benefits of vertical development extend beyond individual leaders; they can transform organizational culture as a whole. By fostering a culture that prioritizes vertical development, organizations can achieve several key outcomes:

- Silo-Busting: Encouraging collaboration across departments leads to more integrated solutions.

- Agile Decision-Making: Leaders who think critically and adaptively can make faster, more informed decisions.

- Enterprise Ownership: A shared sense of purpose and accountability fosters a culture of ownership among employees.

- Dilemma-Readiness: Leaders become better equipped to handle complex dilemmas and navigate uncertainty.

- Strategic Complexity and Disruptive Capability: Organizations can better anticipate and respond to market changes, positioning themselves for long-term success.

 As the research by Chesley, Egan, and Lahl suggests, the alignment of culture and strategy is essential for sustainable success. 

By investing in vertical development, organizations can cultivate leaders who are not only capable of navigating complexity but also driving meaningful change within their organizations. 

Ultimately, in the battle of culture versus strategy, culture will always emerge victorious.