Corporate Culture is probably not on the top of many lists for serious discussion at a time when businesses just want to have enough money in the bank to meet payroll, or meet bank agreements so there loan is not called. However, culture discussion is important because it is one of the things that could have avoided putting us where we are today. If we are to learn from our experiences, this is a mighty important one that deserves a little time.
Describe your company culture? Can you do it in 5-8 adjectives? Good! Now, ask your leadership team to do the same? Your customers? Do you all use the same adjectives? If you said yes, stop reading and pop the champagne. You are in a small group. If not, read on.
First, what is culture? It is the organization’s values, beliefs and behaviors and usually represents the unwritten rules through which everyone’s actions and interpreted, individually and in groups. Cultures can be positive or negative.
So what? Here is why it matters. There are two main reasons. A company has to operate in a manner consistent with its culture or values or it can’t be successful. You can’t ask an organization specializing in the blame game to succeed in being accountable. If there is no trust how can an organization really be motivated by the next big project—they are sure it will never be funded anyway. Or in some family owned businesses, it doesn’t matter how hard you work, if you aren’t family, you will never get past a manager title. The second reason is a bit more conceptual but I have a strong belief that culture will replace process as the variable which will most determine success. Now we value process, repeatable and predictable ways to introduce product, define customer service and other key operations. They are all documented in a book, taught in the company university and ingrained in performance reviews. In the future, giving our evolving educational systems and generational differences, culture will define how people act more than rules. What is right will matter more than what is practiced. Right by what standards? Clearly different people have different vales and respond to different cultures. Some want stable and steady. Some want rock and fire! Those people will work differently, may both be successful but not in the same culture. If you said you wanted a culture where there is a sense of urgency, high performance excellence and innovative you would have a very different company than one that is Collaborative, Concerned for People and Empowered and values Customers Service. Imp not saying one is better—they are different. Each can be successful in it own way but it needs to define itself in the context of “what they stand for”.
A while back Bruce Temkin wrote a blog about Amazon’s acquisition of Zappos and wondering if it will kill Zippos culture. Their 10 core values are:
- Deliver Wow Through Service
- Embrace and Drive Change
- Create Fun and a Little Weirdness
- BE adventurous, creative and open minded
- Pursuer growth and learning
- Build open and honest relationships with communication
- Build a positive team and family spirit
- Do more with less
- Be passionate and determined
- Be Humble
Zappos invests in culture as a corporate asset. Amazon paid $1 billion for $40 million in annual earnings. If they require faster growth, more profit, and rapid expansion across categories, how will this impact the Zappo’s culture?
So, first define your culture, walk the talk, and be its guardian—be careful of small changes or big changes that jeopardize it Unless that is you intention.
By margaret reynolds www.reynolds-consulting.com
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