The Power of Company Culture

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The Power of Company Culture

In more posts than I can count, I have written, discussed, and interviewed authors on the importance of organizational culture. A powerful culture fuels an organization to achieve greatness. When a new book by Chris Dyer titled The Power of Company Culture: How any business can build a culture that improves productivity, performance and profits hit my desk, I was interested to see the author’s view of culture and his interpretation of the latest research. Chris didn’t disappoint. The book takes the reader on a thoughtful overview of culture and shows the practical steps to take to improve yours in record time.

I recently spoke with Chris about his work on company culture.

 

“Culture is the bedrock of business success.” -Mark Goulston

 

3 Ways to Increase Transparency

Transparency. You share some great ways to increase transparency. Is it ever possible to be too transparent?

Of course! Take any example, and a case can be made that too much of a good thing can be bad for you. Each company needs to decide how transparent they should be with employees, customers, and vendors. InThe Power of Company Culture, I present evidence that more transparency is usually better. Regulations, privacy concerns, and competitive advantages aside, transparency is really about writing—and playing by—the rules of the game.

When companies take charge and share information about their financial health, successes, failures, goals, and dreams, they then control their own narrative. As humans, we can only use the information we already have to explain something new we don’t understand. By providing more information to those impacting our companies, we help them arrive at the correct conclusions and outcomes.

Any company looking to improve their transparency should start in a few key areas. First, ask: Does everyone in the company know what goals have been set by senior management? Overall company goals, department goals, and even team goals should not be a secret.

Second: Does everyone know and understand the financial health status of the organization? For public companies, this information is available to everyone. But most companies are not public. Decide how far you are willing to go, and share the numbers that you can.

Third: Do teams, departments, and employees understand what is expected of them by senior leadership? Nine times out of ten, when a department or person is not measuring up to what is expected, there is a disconnect as to what they believe is expected.

 

“Transparency is both a business ethic and a cultural element in the workplace.” -Chris Dyer

 

Develop a Positive Culture

How do leaders develop a culture of positivity?

There are lots of ways to infuse positivity into an organization. I suggest a deep dive into the Appreciative Inquiry and Positive Leadership working models, via books and interactive workshops.

Before you do that, consider where your business falls on the positivity scale. Do your people ask, “What went right?” or, “What did we do well?” Or do they just focus on solving “problems”? Often, we forget to ask and identify what is working, and consider that the place for us to do more.

Positivity also entails identifying who does what, well. In a team, it is common for some people to excel in one area, and others somewhere else. Aligning tasks and goals around strengths, and minimizing weaknesses, is more positive than working on what’s not working.

Additionally, look at the language used by people in your company to find potential tweaks for positivity. Instead of addressing troublesome issues as “problem solving,” which is a negative concept, start calling them “opportunities to improve.”

 

“Give feedforward not feedback.” -Chris Dyer

The Secret to Higher Profits in a Digitized World

The Decline of Customer Satisfaction

Customer satisfaction is going down, not up.

How can that be in a world with unprecedented technological progress?

 

“A brand is the sum of the good, the bad, and the off strategy.” –Scott Bedbury

 

Tema Frank founded Web Mystery Shoppers International, the world’s first company to test omnichannel customer service. Her new book, People Shock: The Path to Profits When Customers Rule , shows off both her decades of business experience and the research from interviewing over 150 business leaders. She developed a formula to help businesses improve the customer experience in the midst of a digitized world.

I recently asked her about her research.

 

“The key to getting work done on time is to stop wearing a watch.” –Ricard Semler

 

What is PeopleShock?

As we automate more and artificial intelligence wipes out jobs, the smaller amount that is left for human to human interaction becomes critical. Companies that are people-focused (while using technology to support those people) are the ones that will win in an era of increasing competition and social media power. If you get the people side right, PeopleShock is your key to success. Ignore it and your company will soon be history.

 

“If you’re too busy to build good systems, then you’ll always be too busy.” –Brian Logue

 

Get the 3Ps of Profit Right

Please share your 3P Profit Formula with our audience.

Customers are cranky, and they’ve got more choices than ever before. So you’ve got to keep them happy, and that means getting all of the 3 Ps of Profit right:

Promise – Having a clear aspirational, inspirational and memorable reason for doing what you do inspires staff and customers. It also gives staff a filter for decision-making: Would their action be consistent with the company’s promise?

People – Business success comes from connecting effectively at a human level with people inside (staff) and outside your organization. Outsiders include not only prospects and customers, but people we sometimes overlook, like suppliers, distributors, lenders, investors, media and the public.

Process – As time goes by, some of the processes that got you to where you are stop making sense.  To deliver consistently great customer experiences, you have to regularly re-assess how you’ve been doing things. Start by looking at processes from a customer point of view. What do they experience? Then look at how that lines up with what you do internally.

 

“CEOs are the ones who must conduct the corporate orchestra.” –Tema Frank

 

How does this translate into higher profits?

How to Increase Profits Through Gender-Balanced Leadership

The Power of Diversity

It’s not just the right thing to do.

Diversity is organizational rocket fuel. It’s better decision-making. It’s better results.

I’m always studying what works, what doesn’t, and the latest thinking in this area.

That’s why Melissa Greenwell’s new book, Money on the Table: How to Increase Profits Through Gender-Balanced Leadership, got my attention. Melissa is Executive Vice President and Chief Operating Officer of national retailer The Finish Line, Inc. Her new book utilizes current research and demonstrates that more women in management equals better financial performance.

I reached out to her to talk about her research and her perspective. Her views are intriguing and offer a view worthy of discussion and consideration.

 

Study: more women in a group increases problem-solving and decision-making.

 

The Case for Gender Diversity 

For those who aren’t up to date on the latest research, tell us why gender balance is good for organizations. What’s the case for gender diversity?

Hardwiring in the brain is different for men and women. The physical differences are associated with natural tendencies in thinking, communicating, and problem solving that are all needed in business. Men and women demonstrate these traits in varying degrees. Organizations that have traits from both genders will get the best questioning, debate, and idea generation resulting in healthier strategies and increased performance over those who don’t. Those are the organizations that will create the best products and services for their customers.

 

Fact: Public companies with more than 1 woman on the Board have higher returns.

 

Why do some resist it?

I don’t believe people resist it. I believe leaders don’t know what to do to change it. That’s the biggest reason I wrote the book – to provide some actionable advice as to what leaders can do to effect change.  Others have brought awareness and that’s a good first step. Now we need to start doing the things that will lead to more gender diversity in leadership positions.

 

Study: Companies with no gender balance on the board have lower market capitalization.

 

You say that you wrote the book mainly for men in power because they can change the ratio. And then you say some “get it” and some “think about it.” What’s the difference?

I wrote the book mainly for people in positions of power – anyone who is in a senior leadership role can effect change faster. At this time, the vast majority of those people are men.  Of the male leaders I interviewed, I found that there are two main groups: those who “get it” and have been taking steps for several years to have more women in leadership, and those who are “thinking about it” – that is, they acknowledge that women are important to their business but are struggling to find ways to have more of them in senior leadership.  The biggest difference between these two groups of leaders is that those who have greater gender balance in their organizations have taken some very deliberate steps to get them there. They take more time to seek candidates and they reach outside their known network to find female candidates. They tend to take more risks on up-and-coming talent within their organizations as well.

 

Reasons Companies Fail to Keep Women

It’s not only recruiting but also retention that is important to changing the ratio. What are some of the reasons organizations fail to keep women?

Some organizations still refuse to implement the flexibility it takes to keep female talent. They still view creating flexibility as making exceptions rather than viewing it as a competitive advantage. They are busy counting hours instead of measuring results. Those that continue to think that way will fall behind in the war for the best talent.

 

What’s unconscious gender bias and how do you recognize and deal with it?

Unconscious gender bias is continuing to hire people who are just like us (male or female) and not even thinking about the ramifications of doing so. Little to no thought is being given to examining the gender balance of the team or organization when this continues to happen. The only way for it to change is for the top leader to set the tone and lead by example. Everyone follows the lead of the CEO or President, which in itself is far more important than implementing awareness initiatives.

 

Steps for Building Gender-Based Leadership

How to Create Repeatable Success and Endless Encores

Repeating Success

 

Ever feel frozen in place?

Have you seen something take off and then get consumed with worry about what’s next?

How do we create an encore worthy of that success?

 

Ken Goldstein’s new book, Endless Encores: Repeating Success Through People, Products, and Profits, tackles the difficult topic of creating continued, repeatable success. His various corporate roles make him uniquely suited to share his perspective on success. Currently, he is Chairman & CEO of SHOP.COM and previously he was Executive VP of Disney Online and Publisher of Broderbund.

 

“All success resets expectations for what comes next.” -Ken Goldstein

 

How to Create Repeatable Success

You wrote a fictional story about a topic that seems to haunt many: repeating success. Why did you choose this topic?

I think there are two challenges that weigh heavily on our minds at work: first, how do we achieve success, and second, once we achieve some success, is that the last success we are going to have? In many senses, the second challenge is much more haunting than the first. When we’re initially trying to break through the noise and get noticed, we have nothing to lose, so our leaning toward risk is high and our openness to the unusual is ungated. We are open to helping others, and we welcome their help because together we are stronger. Once we have a reputation of any kind, fear starts creeping into the mix. No one wants to be a one-hit wonder, but often we become our own worst enemy and unintentionally box ourselves in. We worry about our next thing being compared to our last thing. That worry can filter our creativity, our bias to action, even our kindness toward others as competitiveness takes over. None of that negativity helps us win again at all, it just clouds the way forward. That’s why I chose this topic. So many people I know are consumed by it, overwhelmed by it, and sometimes frozen in place. The colleagues I’ve helped in person in a leadership capacity have continued to move forward with the new, and I thought if I could capture that spirit of innovation in a story with real characters, I could inspire others to keep looking forward and only forward.

 

“Leadership is earned and recognized, not granted.” -Ken Goldstein

 

Why We Learn More From Failure

Why is success difficult to repeat? After all, if you did it once, you can follow the same process . . . or not?

Ken GoldsteinHere’s what I have discovered repeatedly: You can almost never recreate a success, but it is absolutely predictable that you can recreate a failure. That’s why we learn more from failure than we do from success. In failure, we learn what not to do again. It didn’t work, so put that on your list of things you don’t need to try again. In success, if we do the same thing again, or even a modest alteration, we will not create the same inventiveness or excitement that we did with the original. Something can only be unique once, and success is usually unique. That’s why it is so hard to repeat success, because no matter who you are, no matter what you’ve done, all that is in the past, and you must start from zero. It’s also why I say you’re not really failing if you’re learning, because the learning is what sends you back to try again. When we embrace the empowerment and humility of starting over, releasing defensiveness and facing the blank canvass with a set of trusted colleagues, we have the best shot at repeat success, which is the same shot we had at first success. Accept that and innovation is all you need to worry about (and that’s plenty).

 

“Offer customers more than what they think they want.” -Ken Goldstein

 

Build a Mission That is More than Words

What’s the best way to have a mission that is “more than words”?

When a company’s mission statement is in a binder on the shelf or buried in the company handbook, it’s dead text — it means nothing and empowers no one. Shared values are what drive people to work together and innovate. A set of shared values allows a mission to be more than words, but only if those around us embrace the values with authenticity and conviction. We live in a cynical world where conflicting data and untested opinions are communicated broadly in real time. If we say “our people are our most valuable asset” and then lay off 20% of our staff because of a bad quarter, was that a shared value? If we say, “We cherish integrity here,” and then our CEO resigns for unexplained reasons around a publicly broadcast compensation scandal, what happened to our commitment to integrity? Walk the walk, lead by example, and you can get the people around you to rally to any cause you share, but you must share it as a set of consistent actions (emphasis on “consistent”), not a slogan.

 

“Long-term leaders spend the majority of their thinking about talent.” -Ken Goldstein

 

3 Steps to Building a Winning Team

Leadership Lessons From the Unusual Story of Market Basket

An Uplifting Corporate Story

We often read stories about corporate greed, about slimy executives, about profits at the expense of people. These stories grab headlines because they hit a nerve and fuel anger. I have never read a story quite like We Are Market Basket: The Story of the Unlikely Grassroots Movement That Saved a Beloved Business where employees and customers joined together to demand the return of a fired CEO.

The story may be unique, but it offers powerful lessons and insight into the changing nature of how we view corporations and what we expect as employees.

I recently spoke with the authors, Daniel Korschun and Grant Welker, about this story.

 

Loyalty is Demonstrated Every Day

This story has so many powerful lessons. One of those is about loyalty. What does the We Are Market Basket teach us about loyalty?

Arthur T. and much of the senior management team have been extraordinarily successful at engendering loyalty. But loyalty at this company tends to be viewed as a two-way street. Employees – they call themselves associates – we speak with tell us that they feel loyal to the company and top management because they feel a loyalty to them from that top management. So what we see at Market Basket is people who are reaffirming their commitment to each other over time. The result is these very strong bonds we see. The lesson for managers is that you can’t expect loyalty without making a sacrifice yourself. You’re not going to gain loyalty just by changing the pay or the job responsibilities; it’s something that has to be demonstrated every day.

 

“You can’t expect loyalty without making a sacrifice yourself.”

 

A Respect for Others

Why did Arthur T. inspire such passion and loyalty?

Arthur T. is beloved as the CEO largely because he gives all associates, customers, and vendors respect. He says explicitly that no one person is special at the company, and from what we’ve seen he walks the walk.

But it’s also important to point out his place in the protest. Bringing back Arthur T. was the central demand of protesters, but in our view, they were fighting to save the company’s culture. Reinstating Arthur T. became the critical step in making sure that this New England institution continued to serve those who have known it for years, and sometimes for generations.

Market Basket 

A Lesson for Boards and Corporate Leaders

What does the Market Basket experience teach boards of directors?

Most business schools today teach that the fiduciary responsibility of directors is to look after the interests of shareholders. However, this idea is simply not supported by the corporate code in Massachusetts and many other states. The code states explicitly that the board is to be a steward of the corporation, which includes customers, employees, shareholders, and others. We need to hold our boards to this higher standard.

Leadership lesson: A corporation’s duties extend beyond shareholders to the broader community.

 

A Commitment to the Community