Fast
Forward Corporate Culture 101
“I have been taking my firm’s CULTURE for granted. I love the company I work for; I am treated with respect. I have the best job because they utilize my talents well. Today, when I heard what other people’s cultures are like, it brings me back to reality. I am so thankful to be working where I am.”
This was what “Louisa” told me recently at a presentation I did on corporate culture and the bottom line. I smiled as she bragged about her employer and replied, “You are one of the lucky ones.”
She asked me, “Why do so few companies GET IT about the importance of fostering a great culture and its affect on employee’s loyalty and effectiveness?” Louisa's question caused me to pause because the answer is both complicated and so very important. I discovered in our conversation that Louisa is neither a Culturalist nor a Change Agent. Yet she, like any of you readers want to know more about how you can influence your firm’s culture.
That is the purpose of this article.
I will break it into the Seven Questions Process, which I learned from a talented Change Agent, Norman Levy, CMC. He uses these questions to help his clients find their strategic advantage so that it fits like a glove. These questions he asks his clients to answer are: “WHAT, WHICH, WHO, WHEN, WHERE, HOW, AND WHY.”
Let us review the basics of corporate culture especially for those of you who are a culture change agent, a culturalist or just a student of corporate culture.
WHAT is corporate culture?
Corporate culture is the mood, attitude and atmosphere of an organization. It impacts and has an effect on nearly every result. Corporate culture is the story we act out each day that says who we are.
My shorthand way of describing corporate culture is: “How things are done around here.”
WHICH culture should we have?
Corporate culture is a mosaic and made up of 10 integrated and interconnected components. Just like two mosaics never look the same, no one corporate culture is the same as another because the culture mosaic pieces fit together differently in every organization. Each corporate culture is unique.
WHO creates the culture?
The founder of a company or organization is the original creator of the culture because it is a direct reflection of his or her attitudes, behaviors and beliefs. The employees who initially work for the firm usually have the same values as the founder. Most often the company is “like a family.” It is very informal, unstructured, flexible and close knit.
WHEN do cultures get formed and how do they change?
As the company grows, new leaders are brought in who bring their own sets of values and behaviors. They impact the original culture, yet a portion of the original remains. Since there are more people now, more structure is introduced.
The culture goes from informal to formal and changes from an atmosphere of “family” to one of “business.” Many of the people who thrived on the informality or closeness leave because of this natural evolution. Others resist the change and try to hold onto what came before. This begins to damage what was “a great place to work.”
WHERE does culture reside especially in a large organization?
As the firm grows and departmentalizes and creates multiple locations, each team, unit or location forms it own subculture. If the original culture is one that ensures everyone strives for the mission and the corporate values are lived out each day, these subcultures are a direct reflection of the “mother culture.”
But because the connections are weak or mismanaged, as in most of the corporate culture I have studied, the subcultures take a life of their own and the values and behaviors grow very different. This further destroys what was “a great place to work.”
The proof of this fracturing of cultural ideals is that silos are formed, turf battles rage, sharing ceases and a mentality of “us versus them” rages. Nearly all behaviors that negatively impact your firm can be traced to a reward that supports or reinforces it!
HOW can a culture be changed?
Since corporate culture is the story you enact each day, YOU REWRITE THE STORY. If your story is, “Don’t trust the %%*^%$ in management,” change the story and trust them because you are all on the same side.
Even in the most dysfunctional cultures, not all the 10 mosaic pieces are broken or need fixing. Usually only between three and five are the problem children. Otherwise the firm would be on the brink of bankruptcy or worse.
So the culture shapers (Change Agents and Culturalists) need to identify the culture components that need fixing and reenergize them.
There are about 100 culture change tools I have identified that can be used to transform a culture. Your Change Agents need to apply the correct tools to the problem and make sure a new story really does take place.
This takes time. A true and lasting culture transformation needs a minimum of 18 months and can take as long as six years. The time needed depends on: who is driving it, the urgency, the mosaic pieces involved, and the size of the organization to name a few.
WHY does a culture need to be revitalized?
- Employees’ attitudes are largely a product of the culture they work in.
- The primary motive for shaping your culture is to reduce the stress as you implement and sustain positive and lasting change.
- Employees’ performance is directly affected by the firm’s culture. The culture either builds them up or pushes them down.
- Your culture brings forth success and failure with equal efficiency.
- Cultures need to be revitalized because if nothing changes in the web components of the culture, employees’ attitudes will not change.
- Finally, an unmanaged culture never, ever gets better. It only gets worse.
Your corporate culture impacts people’s accountability, ethical behaviors, customer service, your profits and most importantly your reputation!
Want Proof?
Men’s Wearhouse is lead by Culturalists. They understand the power that corporate culture has not only on their employees’ performance but also how well the customer is served by their satisfied, loyal employees.
Explaining why Men’s Wearhouse has a track record of success measured by both continuing sales growth and higher profits, Richard Goldman, Executive VP explained, “Our distinguishing feature is how we treat our employees. You can’t tell them to treat your customers like kings and not treat your employees like kings.”
©
Ron Rael, CPA. All Rights Reserved. Ron Rael, CPA is an authority
on workplace culture. He works with Fast Forward business leaders,
coaching them on ways to recognize, reenergize and revitalize their
unique work cultures. He welcomes your thoughts and comments and
can be reached at (425) 898-8072 or e-mailed at Ron@ronrael.com