How Silence Culture Can Put Your Company at Risk

In many cultures, silence is a sign of hierarchy or respect. Sometimes, silence provides space so others can be heard. But there’s another side of silence people don’t talk about—silence culture. Silence culture and its effects create quantifiable risk and revenue loss for organizations. However, the upside of enabling, and preparing, for the use of employee and customer voice can be significant.

What is silence culture?

Silence culture is an environment where speaking up is neither encouraged nor rewarded. Within silence culture, speaking up carries a great deal of perceived or real consequences for employees. So, questions are not asked and risks are not pointed out. You may have heard silence culture referred to as “not making waves.”

What problems are caused by silence culture?

The problems caused by lack of disclosure can be significant. Our founder, Diane Dye, created the ID Framework for Non-Disclosure Risk, which is proprietary to People Risk Consulting, to explain the four types of disclosure silence culture discourages. This teaching framework has four components.

  • Incident Disclosure
  • Instructional Needs Disclosure
  • Idea Disclosure
  • Identity Disclosure

Incident Disclosure

Definition: The likelihood an individual would disclose the occurrence of an incident.

Problem: 50% of workplace injuries go unreported. Direct costs include workers’ compensation payments, medical expenses, and costs for legal services (OSHA, 2024). Delayed reporting and care for workplace injury can result in fines in some states or worsening of the condition including damage to tools, equipment, and other property (WCF Insurance, nd). It can also result in time lost for replacing damaged equipment, spoiled work, and loss of production.

What You Might See: Physical safety risks, legal risks, cover up of costly mistakes, waterfall effect of a series of small incidents leading to larger, and more costly, failures.

Who Cares: This is often the biggest focus organizations have when it comes to the use of employee or customer voice in the workplace. Safety managers, risk managers, occupational health and safety care about this.

Instructional Needs Disclosure

Definition: The likelihood an individual would disclose their need for instruction.

Problem: Poor employee training and lack of identification of gaps in understanding can lead to low productivity, inefficiency, poor customer service, high turnover, and low-quality outputs of services and products (The Training Associates, 2022)

What You Might See: Decreased customer satisfaction, increased customer churn, employee turnover, workplace injury

Who Cares: Learning and Development functions focus on closing gaps in instructional needs, although some current performance management processes and levels of psychological safety within business units do not support individual disclosure of instructional needs until a costly mistake is made and a reactive response is necessary. Operations executives also care if people, process, and systems align.

Idea Disclosure

Definition: The likelihood an individual would disclose an idea or the disagreement with an idea.

Problem: According to a Gallup survey, disengaged employees cost U.S. companies between $450 billion to $550 billion annually in lost productivity and is an $8.8 trillion global problem. Sustained lack of innovation can lead to high employee turnover, increased recruitment costs, and a negative impact on bottom-line results. Disengaged employees are less likely to go the extra mile for customers, leading to subpar customer experiences. 

What You Might See: Lack of data on voice of the employee (VOE) or voice of the customer (VOC), stunted innovation, employee turnover, employees leaving to take their ideas to the competition, loss of competitive advantage, failure to speak up about detrimental ideas or plans that could create incidents

Who Cares: CEO, Chief Customer Officer, human resources executives, Chief Revenue Officer, risk management, change management

Identity Disclosure

Definition: The likelihood an individual would disclose or defend their identity.

Problem: Identity problems in the workplace can include identity conflicts, social identity (belonging or lack thereof), and identity crisis. It can involve a lack of clarity about personal role or organizational culture alignment including one’s values, skills, interests, or sense of self. People problems spurring from identity are costly to organizations.

What You Might See: Employee withdrawal, disengagement, behavioral concerns, employee retention problems, increased complaints and investigation

Who Cares: Human Resources leaders, DE&I executives, risk managers interested in harassment, and other human issues

If you would like to understand the ID Framework for Non-Disclosure Risk and how PRC can help you apply it to your organization, connect with us on a quick inquiry call. Workshops, leadership training, and assessment services are available.


People Risk Consulting (PRC) is a human capital risk management and change management consulting firm located in San Antonio, Texas. PRC helps leaders in service-focused industries mitigate people risk by conducting third-party people-centric risk analysis and employee needs assessments. PRC analyzes and uses this data alongside best practice to make strategic recommendations to address organizational problems related to change and employee risk. The firm works alongside leaders to develop risk plans, change plans, and strategic plans to drive the human element of continuous improvement. PRC provides technical assistance, education, training, and trusted partner resources to aid with execution. PRC is a strategic partner of TriNet, Marsh McClennan Agency, Cloud Tech Gurus, Predictive Index, and Motivosity.

Q&A with Diane Dye by Darren Prine, Chief Revenue Officer, Cloud Tech Gurus

In this interview, Darren Prine, Chief Revenue Officer of Cloud Tech Gurus discusses the relaunch of WWC into People Risk Consulting and the importance of adoption risk mitigation up front in the requirements collection process of software or solution selection.

Darren: Can I tell you something? I’m just picking up a great energy vibe from your company rebranding. I see a lot of excitement and positivity in what you’re doing at People Risk Consulting. 

Diane: I just feel good and there is, so thank you for that feedback. I started What Works Consultants (WWC) in 2016. It’s been great being this trusted advisor to the C-level, helping them with board communications. But I had this nagging feeling the business wasn’t capturing my “why” as a CEO, you know? And, you know, Simon Sinek says start with why, right?

Darren: Someone else brought up his “Find Your Why” book to me on a call yesterday, and now I’m going to have to read it.

Diane: Oh, yeah, you have to. It’s the purpose-driven energy. That’s what you are experiencing is coming from. And as I proceed in my doctoral studies, which I’ll finish this year, I have just uncovered this passion for use of voice and disclosure.

And what happens, especially linking the purpose of our two companies, is you have solution adoption risk. You have a big adoption risk any time you make technological changes. Adoption risk begins with not doing the proper research on the front-end to determine where the current solution was lacking and how that aligns with what you want to achieve.

You don’t want to get excited about adopting something new and, because you missed the end-user or the CX element, recreate the problem with a different solution. That’s frustrating.

So, it’s a different approach to requirements collection. You want to look at both the power users within the organization and the customer-facing reception and how it impacts the customer experience.

When evaluating, ask yourself…

  1. What impacts has the current solution had? Positive and negative?
  2. What pain does the current solution create that you are looking to solve for? If there is no current solution, what are the reasons for seeking a technological solution to a problem?
  3. How has the people element of change been considered?
  4. What advocates and resistors exist within the organization?
  5. How does this transfer into your ability to drive full solution adoption?

You have to ask these questions because, otherwise, people will stay pretty tight-lipped internally if you don’t ask. This lack of inquiry creates a data vacuum that can add risk to a change effort.

I mean how many times have you heard, “we’re just going to stick with the status quo because we don’t want to open that can of worms. It’ll be fine.” It results in a kind of ostrich syndrome. Then, they get surprised when ignorance is anything but bliss from a risk perspective.

Darren: This is a good time to have this discussion. I recently had some issues with Airlines. I had a flight from Costa Rica, coming home from a trip there, and last minute they canceled the flight. There was really no information. I was in a giant line of people at the airport trying to figure out what to do. I then spent six hours in the chat queue, trying to get an agent. During that six hours, I went ahead and just booked another flight with Southwest instead of American to get home. After six hours, finally, they got on the chat. And I told them what was going on and how poorly they handled it. And at least they got them to refund me on the flight. But that’s an awful customer experience. But the part of that which is really sad is that there are so many technologies and solutions available that could have kept my experience from happening. 

Diane: And I can also understand and empathize somewhat. It’s not easy when the world is changing all around you. What they are worried about is the AI chat bots creating more liability for them than solving problems. But that’s a garbage in, garbage out kind of problem. And if you are engaged in the adoption of your solution, that’s a risk that can be mitigated.

Darren: American Airlines either doesn’t care or they’re like the ostrich and are happy with the status quo. And from a professional perspective with years in the call center industry, there are things they can do immediately to fix this. They can use Realtime AI agent assist to speed up agent interactions so agents can handle more interactions. They can use AI to automate 30% or more of their voice and digital interactions. We have partners who have thousands of on-demand gig agents trained and skilled who could be utilized during times of high interaction fluctuations. Our partners can fulfill that very quickly to handle surge times and improve customer experience on the fly.

Many organizations don’t know it but – they’re an ostrich. Most of them opt to save the money now not realizing the risk they are opening themselves up to. But it’s not just a risk mitigation play, there’s plenty of reward. Most of them have like a 5x to 10x ROI or more but they’re just not doing it.

And I see it all the time with companies. They will have an AI adoption team meet with consultants like you to look at their the full picture, someone outside the organization who’s agnostic, who’s going to look at the whole landscape of the company. They look at people, processes, leadership, training, how do they create leaders, etc., and map that out so they can understand it. By the end of it, the executives understand the root causes to some of their expenses and problems, customer care calls that could be avoided if they handled something differently or had better self-service, but there’s a resistance there.

Diane: Everyone wants to be the first person to win. No one wants to be the person to publically fail. But failure is a necessary risk of change. Kaizen says experiment fast, fail fast. Rapid prototyping is a core of innovative behavior. And the philosophy behind both is you never really fail, you just learn and innovate. But there’s a fear. And when there’s fear, there’s paralyzed action until its too late and then there’s a crisis. My workbook takes this concept down to an elementary but effective level anyone can understand.

Darren: It’s like there’s a fear and a resignation at the same time. I know my systems. I know my job. It’s not perfect. And ultimately it’s not that bad so I don’t care.

Diane: It’s also about empowerment too, the confidence someone has if they speak up that their voice will be heard and heeded. Inability to create change can be a real demotivator of the most brilliant people. Like this is the way it’s always been, this is the way it always will be. I’ve accepted that.

So they just kind of suck it up and do the day-to-day of job, even though the risk of failure is so much greater with inaction. But the interpersonal risk comes in because in their mind, they say, “you open your mouth you might piss the wrong person off and lose your job.” It’s self-protective.

That’s where that’s where psychological safety comes in. As an executive, you have to set up these structures where people can speak up. Otherwise, you’ve got your company or department set up like a horse with blinders on. You don’t get suprised by external circumstances. You blindside yourself in a way. And this chaos that comes from silence and avoidance could literally bring your company down. Southwest really got hit hard. I was part of that. Actually I was traveling with them during that time. They gave me a 25,000 air miles, an apology and a refund. I was fortunate to be in driving distance from where I was going, from Reno, Nevada to Scottsdale, Arizona. So, I just hopped in the car and just drove myself in my own car. But a lot of people aren’t that fortunate.

When that whole story broke, it was like, “their systems are how old? Their training process is what?” And then it became known it was always this project or that pushed in front of updated booking and call center systems. And ultimately, it required a crisis moment to make a choice.

You can see the tsunami, you can see the water pulling back from the shore. You don’t have to wait until people are drowning to take action. That’s why I tell our clients: Are you ready to take the RED PILL, Matrix-style? Because we can assess all day long, but a company has to be willing to say yes. We will invest today to avoid drowning in the flood tomorrow.

Darren: I think what you’re saying is so important.

Diane: I am really passionate about activating the voice of the organization (VoO) and the voice of the customer (VoC) and unifying them to create meaningful organizational change.


People Risk Consulting (PRC) is a human capital risk management and change management consulting firm located in San Antonio, Texas. PRC helps leaders in service-focused industries mitigate people risk by conducting third-party people-centric risk analysis and employee needs assessments. PRC analyzes and uses this data alongside best practice to make strategic recommendations to address organizational problems related to change and employee risk. The firm walks alongside leaders to develop risk plans, change plans, and strategic plans to drive the human element of continuous improvement. PRC provides technical assistance, education, training, and trusted partner resources to aid with execution. PRC is a strategic partner of TriNet, Marsh McClennan Agency, Cloud Tech Gurus, Predictive Index, and Motivosity.

Q&A: How do you minimize human risk through change management, metrics, and monitoring when the solution is provided to you by another department?

The Question:

Hey Diane. Solutions have already been purchased for my human resources department. My company is exploring AI and predictive analytics and solutions are already rolling in with a fast expected implementation date. How can we best manage the change and make sure our employee experience is impacted as little as possible by the risk?

The Answer:

Your first step is to identify the unknowns, potential risks and problems you could be facing with the systems that have been purchased.

  1. Unknown alignment of these systems with current employee journey for human resources
  2. Unknown predictive analytic or AI capabilities
  3. Unknown risks associated with the systems

Your second step is to create a system of inquiry to understand the current situation in relation to those risks and unknowns to uncover the opportunities.

  1. Conduct what we call a backwards analysis of the systems. Rather than a traditional systems requirements collection, what you are doing here is collecting the capabilities of the systems that are already purchased. What are these systems capable of doing?
  2. Conduct a departmental needs analysis. These are needs in relation to your employee journey. Create or pull your employee journey map. Align the systems analysis with its place along the existing employee journey. How do these systems support the existing people operations of the company?
  3. Align systems capabilities with organizational goals for the human resources function. What capabilties do these systems have in alignment with organizational objectives for maturity in AI and predictive analytics?
  4. Determine system shortfalls, if any. Where are the gaps between systems capabilities and the employee journey throughout the human resources/people operations function?
  5. Determine opportunity areas offered by the systems. Where are the opportunity areas, aspects perhaps not thought of, that are possible due to the systems capabilities?

Third, you are going to begin to develop a change management strategy based on the data you have collected.

  1. Visualize how the current situation would be adjusted. How can the employee journey adjust to capitalize on opportunities while mitigating risk in any systems shortfalls?
  2. Understand if additional system modules or plug-in solutions are needed to meet organizational needs. How, if at all, can the gaps be filled in a way that will improve employee experience and minimize talent risk?
  3. Develop a change management plan with change phases. Create a phased rollout plan for the change just rolling the new systems into a status quo environment. The phased replacement will minimize change fatigue, cognitive overload of personnel, and mitigate the risk of low adoption. It will also create a level of comfort, achieving success with one stage before moving on to the next – building momentum. This also mitigates risks to employee experience and employer reputation created by poor hiring and onboarding experiences.

Now that change is underway, you will want to develop success metrics for the project and become an active observer of the results. Particularly in the case of AI integration, there are a number of risks.

  1. Unintended consequences: Theory and practice are two different animals. Once you begin to pilot, you will need to keep your eyes open for unintended consequences of change not covered by the list below.
  2. Garbage in-garbage out: Generative AI needs to pull top down and learn from established documentation such as existing policy documents or communication with employees.
  3. Unlawful discrimination: Lack of consideration of environment or personality for performance planning for example
  4. Loss of talent trust: Be mindful of automating too much and reducing empathy, transparency, sincerity, rapport, and humanity in your organization
  5. Regulations: Data collection and use and new regulations on AI will be important to understand as you roll out new features
  6. Communication: Don’t AI drop your employees. Internal communication plans should fully explain what the AI is doing and when a human can be contacted.
  7. Privacy and security: Your IS teams should be on top of this. Data sensitivity, cyberattack, hacking, and breaches are now a new way of life. Your employees should also know what behavior they need to exhibit with their data to enhance their privacy.

During this period of monitoring, watch and report. This is a multi-disciplinary effort. Depending on your company size, you may be working with HR, risk management, and information systems as well as reporting to your executive team. Here’s what to report that will help you continuously improve.

  1. What’s not working.
  2. What is working and wins.
  3. Employee sentiment.
  4. Power user sentiment.
  5. Remaining gaps.
  6. Discovered innovation.
  7. Suggestions for systems modules, plug-ins, or development.

All of these things enhance your toolbox to step into a new and exciting time in our history, as well as arm yourself to proactively mitigate the risks that go along with new frontiers. This pathway is all about leaning into the future, which is a common interest among departments. Build on your shared vision and goals to unify as a cross-functional team. And, as always, if you need help PRC is always here for you.

PRC’s role is to help guide you through all of this, to drive you and navigate you through the change and risk, however the situation flows.

You are not alone. Contact us if you need someone to walk beside you.


People Risk Consulting (PRC) is a human capital risk management and change management consulting firm located in San Antonio, Texas. PRC helps leaders in service-focused industries mitigate people risk by conducting third-party people-centric risk analysis and employee needs assessments. PRC analyzes and uses this data alongside best practice to make strategic recommendations to address organizational problems related to change and employee risk. The firm walks alongside leaders to develop risk plans, change plans, and strategic plans to drive the human element of continuous improvement. PRC provides technical assistance, education, training, and trusted partner resources to aid with execution. PRC is a strategic partner of TriNet, Marsh McClennan Agency, Cloud Tech Gurus, Predictive Index, and Motivosity.

Case Study: Fortune 500 Change Risk

A Fortune 500 restaurant franchise improved board presentations, internal communication, and strategic decision-making with people risk research and operational insights.

OBJECTIVE

A Chief Learning and Development Officer and Vice President of Human Resources needed a way to assure communication risks were addressed when rolling out large scale capital initiatives. This included understanding stakeholder-centric risks, including how to address board concerns. People risk analysis laid the groundwork for stakeholder alignment and the activation of successful people operations in times of unprecedented organizational and global change.

SOLUTIONS

PRCs research and storytelling teams combined forces to provide a unique risk-aware communication approach for each initiative, grounded in best practices and research. The strategy guided the successful organization-wide implementation of work groups, capital initiatives, and a post-pandemic recovery plan for the organization’s operations and people function.

DELIVERABLES

  • Research
  • Recommendations
  • Internal Team Organization and Strategy
  • Agendas
  • Presentations
  • Executive Scripts
  • Project Risk Maps

If you need help with the people risks related to internal change management and stakeholder impact, contact us.


People Risk Consulting (PRC) is a human capital risk management and change management consulting firm located in San Antonio, Texas. PRC helps leaders in service-focused industries mitigate people risk by conducting third-party people-centric risk analysis and employee needs assessments. PRC analyzes and uses this data alongside best practice to make strategic recommendations to address organizational problems related to change and employee risk. The firm walks alongside leaders to develop risk plans, change plans, and strategic plans to drive the human element of continuous improvement. PRC provides technical assistance, education, training, and trusted partner resources to aid with execution. PRC is a strategic partner of TriNet, Marsh McClennan Agency, Cloud Tech Gurus, Predictive Index, and Motivosity.