Stephen H Baum Leadership

YOU ALREADY ARE AN EXPERT IN CULTURE, RIGHT?

It is no surprise to most leaders that culture matters. Yet in the pursuit of account wins and profits it seems to get lost repeatedly. Since no business can thrive that stays exactly the same, there is always change going on. And how the leader creates and nurtures the culture dictates whether the organization will change for the better and whether the change will be sustainable. Ignore culture at your peril.

WHAT WE MEAN BY CULTURE

It is probably worthwhile to establish some minimum of definitions before diving into actual stories. Culture is these items and more:

–       The unwritten rules for success that govern people’s openness with each other, collaboration or silos and more

–       The great behaviors that are encouraged and the toxic ones that are tolerated

–       It is the spirit that motivates people to make sacrifices or not, whether aspirational or out and out fear

–       Who is celebrated, rewarded  and promoted all signal and reinforce the culture

–       What questions the boss asks first and most often is not lost on people

–       How people come and go (selection, on-boarding, dismissal)

–       Who teaches and develops people so they grow

Even a team with a great culture within a company that has a not so great culture can outperform expectations. So culture is local as well as “national (company-wide).

WARNING

And a warning: I have seen very tough bosses who demand the unreasonable establish a positive culture. It is NOT about being soft or touchy feely.

CASE HISTORIES OF TOXIC CULTURES

If every leader “gets” the importance of culture, why is it that:

–       A family owned business with a great brand and national distribution loses so many of its best people, has people who tell new recruits they fell like prisoners and work under constant fear with no reward to excel? Where enormous energy is expended on attacking each other? This produces a substandard, uncompetitive workforce and often worsening financial results after awhile.

–       A small company in the personnel business starves it of the capital it needs for computers and information systems, refuses to invest in new clients to get off on the right foot? Then blames the people for failing to achieve stretch goals?

–       A potentially industry changing health care company just getting its technology to work and winning the trust of new clients is so micro-managed that people wait to be told what to do rather than take initiative?

These companies are good at shrinking their own well-being and financials.

CASE HISTORIES WHERE CULTURE PAYS OFF

By contrast, how is it that:

–       A start-up with fewer than 10 employees does the work of 20 or 30 employees, works its way through crises and has at least 4 people who act as leaders at various times, depending on the situation. The founder and his almost co-founder treat the squad as a treasured team with high expectations all around and lead by example. Meetings, such as they are, accord everyone at the table respect for their input. 

–       A private equity firm is able to attract the best and brightest stars from bigger, more prestigious firms and win deals with ceos who could have their pick of financial sources? They are, simply stated, a better place to work and a better partner. And they are savvy and tough negotiators. 

–       A company doing $4mm grows to hundreds of millions in revenues and huge EBITDA and the CEO still conducts a monthly class on business himself, sometimes wearing a costume? Continually top-grades his direct reports without using fear as a motivator for performance? Recruits an outsider who is female as president and the entire senior team is enthralled and rallied rather than upset. Focuses the energy of everyone on delighting clients and beating the competition rather than on internal politics and infighting?

ANOTHER WARNING: TRANSPARENCY REIGNS

Your culture is visible to lots of people. What your people say about the company at the barbecue and other social occasions. What is evident from your communications of all sorts. And you have an alumni body no matter how small your company may be.

That’s just my view. What’s yours?

IF YOU WANT MORE ON THIS TOPIC, LISTEN IN TO JIM BLASINGAME’S DISCUSSION OF THIS TOPIC ON SMALL BUSINESS ADVOCATE RADIO SHOW. FIND HIM AT  Small Business Advocate