Shawn Parr, whose company works with large corporations, such as Starbucks and MTV, on innovation wrote a meaty post called Culture Eats Strategy For Lunch.
It reminded me of something I wrote back in 2008, because the title is from a quote by Dick Clark, CEO of Merk and after rereading it I decided it’s worth reposting, so here it is.
Culture Trumps All
A post on Dave Brock’s blog led me to an article at IMD’s site called “An Unpopular Corporate Culture” and, as Dave said, it’s a must read for anyone who still thinks that corporate culture is some ephemeral concept with no real impact that consultants use to sell their services.
And a double-must for those who talk about culture’s importance, but don’t walk very well when it comes to creating a great corporate culture.
For those who prefer to put their faith in plans and strategy, hear the words of Dick Clark when he took over as CEO of Merck in 2005 and was asked about his strategy for restoring the pharmaceutical company to its former glory. “His strategy, he said, was to put strategy second and focus on changing the company’s insular, academic culture.” The fact is, culture eats strategy for lunch,” Clark explained. “You can have a good strategy in place, but if you don’t have the culture and the enabling systems that allow you to successfully implement it… the culture of the organization will defeat the strategy.””
If you’re looking for a best practice corporate culture silver bullet forget it—one size doesn’t fit all.
Rex Tillerson, CEO of ExxonMobil, describes that company’s top-down command and control culture of consistency and discipline as “the source of our competitive advantage,” and has made it a priority to reinforce it.
Meanwhile, Robert Iger and Steve Jobs, in their discussions about the acquisition of Pixar by Disney, have been concerned with avoiding an Exxon style command and control culture. Jobs says that, “Most of the time that Bob and I have spent talking about this hasn’t been about economics, it’s been about preserving the Pixar culture because we all know that’s the thing that’s going to determine the success here in the long run.””
It took Lou Gerstner a decade to remake IBM.
The key lesson Gerstner learned in his time with IBM, as he later reflected, was the importance of culture.”Until I came to IBM, I probably would have told you that culture was just one among several important elements in any organization’s makeup and success—along with vision, strategy, marketing, financials, and the like… I came to see, in my time at IBM, that culture isn’t just one aspect of the game—it is the game.”
The article is more than just additional proof for my favorite hobby horse.
The analysis of the role of employee complaints/negativity play in culture and the importance of what to keep when setting out to change a culture as opposed to what to jettison will give you new insight on your own company’s culture.
In case you still doubt the power and value of culture I hope that Dick Clark, Rex Tillerson, Robert Iger, Steve Jobs and Lou Gerstner combined with the articles in Fast Company and IMD have finally changed your mind.
I frequently focus on creating and sustaining culture and link to articles about that. Today, we’re going to look at culture from other points of view.
What actions and attitudes does culture enable?
Can radically different actions stem from the same culture?
What about technology and culture?
South by Southwest, better known as SXSW, is a festival that celebrates music, film and all things interactive and social, is the last place you would expect to find people recommending unplugging and questioning the value/impact of social on culture—but they did.
GE is lauded for its culture and for its ongoing innovation renaissance and that creativity carries over to its tax department. How creative? It paid 7.4 percent on $5.1 billion worth of US profits as well as a tax benefit of $3.2 billion. How’s that for innovation?
Studies in the US indicate a pervasive culture of cheating at all levels in schools; our politicians cheat, business leaders cheat, many say that you can’t succeed in today’s world without occasional cheating. Consider the difference between that attitude and the German culture where a minister who plagiarized parts of his 2006 thesis was forced to resign.
Speaking of cheating and culture in schools, Harvard Business School is radically changing it’s curriculum, but the real question is whether it can change its culture to reflect that.
We started with what some would consider heretical attitudes at SWSX, so it seems fitting to end with a bit more heresy centering on the idea that technology can’t change culture.
There is much talk of corporate culture these days, but you don’t often hear about corporate traditions, yet traditions are a part of culture.
The primary definition of ‘tradition’ is “the handing down of statements, beliefs, legends, customs, information, etc., from generation to generation, esp. by word of mouth or by practice,” which is pretty much the definition of culture.
But whereas culture looms large in people’s minds, traditions are more bite-sized—a special lunch, holiday treats, secret Santas—and lend themselves to more general input.
December is a month of traditions and I have questions about yours.
Who sets traditions for your team, department or company?
Are they generated spontaneously by the people or do they stem from the bosses at each level? Do they have current meaning or did they originate in the distant past? Are they set in stone, with little or no relevance to current employees or do people embrace, participate and enjoy them?
The best traditions are those that come from people at all levels and stay flexible, so they can grow and change as the people, culture, company and world grow and change.
This year take the initiative and start a tradition in your organization, a tradition that benefits/encourages/transcends and, most of all, brightens the future.
Today’s Expand Your Mind offers links to articles that not only inform, but may shake up your views and launch you in new directions.
Learning doesn’t stop when you leave school; it is a life-long process that often requires you to study. Study habits are usually formed early and carried throughout life, but what if the way you were taught to study and that you teach your kids isn’t the best way to learn? That is the intriguing idea coming from new research.
Varying the type of material studied in a single sitting — alternating, for example, among vocabulary, reading and speaking in a new language — seems to leave a deeper impression on the brain than does concentrating on just one skill at a time. … The harder it is to remember something, the harder it is to later forget.
Discussions about corporate culture are everywhere these days. In this short interview Edgar H. Schein, Sloan Fellows Professor of Management Emeritus at MIT offers a new wrinkle on what corporate culture means theses days; he says to think in terms of cultural islands and the need for disparate groups to be synergistic, rather than homogenous. To all his examples of various cultural sources I would add the culture of individual managers, from CEO to team leader.
You are never going to integrate all of these cultures but you have got to get them aligned and get them working toward the same purpose.
Important as aligning sub cultures is, it can’t happen when the culture is as badly damaged as Home Depot’s after Bob Nardelli ran amok. Surprisingly, it is Frank Blake, another GE alum, recruited by Nardelli, who is successfully changing that.
Frank Blake’s mellow, it’s-not-about-me style helped him move Home Depot past the emotionally charged reign of predecessor Bob Nardelli and recapture some of the culture fostered by its founders. It also syncs with his push to get the company back to its service-oriented roots.
Finally, an exclusive, in-depth look at Foxconn, the ultra low-profile Chinese company that manufactures iPhones, PlayStations, and Dell computers, whose profile was raised in headlines of worker suicides.
Rather, [the celebration] was a joint production of employee unions and management at Hon Hai Precision Industry, the flagship of Foxconn Technology Group, as part of an effort to mend the collective psyche of a Chinese workforce that numbers more than 920,000 across more than 20 mainland factories. The need to do so became apparent after 11 Foxconn employees committed suicide earlier this year, most of them by leaping from company-owned high-rise dormitories. The publicity-averse Taipei-based company and its 59-year-old founder and chairman, Terry Gou, were thrown into the spotlight, subjected to unfamiliar scrutiny by customers, labor activists, reporters, academics, and the Chinese government.
One reason I love the NY Times is that it runs great articles on new research about what makes us humans tick.
Most of us are aware that there are different forms of communications. Verbal, i.e., words, is the most common, but nonverbal, tone of voice and facial expressions, are often more potent.
In research with infants, it was shown that gently massaging premature infants three times per day for 15 minutes helped them gain weight, be more alert, and cry less. These infants were released from the hospital sooner than infants who were not massaged.
The latest research confirms the same positive response in adults.
Momentary touches, they say — whether an exuberant high five, a warm hand on the shoulder, or a creepy touch to the arm — can communicate an even wider range of emotion than gestures or expressions, and sometimes do so more quickly and accurately than words.
Two attitudes make this work.
Sincerity; people will know if your actions are manipulative as opposed to authentic.
Appropriateness; to avoid a negative reaction from anyone use your observational skills and common sense; high fives and similar expressions are the safest, while hugs are the most dangerous. An employee who avoids physical contact with her team is unlikely to appreciate being touched by her boss.
There are many ways to inspire and show you care just as there are many clubs in a golf bag; and just as it is a fallacy to play the whole course with just one club, using only one form of communication to motivate your people is to shortchange them—and you.
Yesterday we looked at positive and negative aspects of culture and I said that today we would discuss how to change/create a culture or sub-culture.
Repeating yesterday’s warning: if you want a culture that is fundamentally different from the overall company culutre be sure you’re willing to shield your people and take the heat.
Remembering that culture is a function of your MAP (mindset, attitude, philosophy™), here are 7 critical points that you need to think through before starting—whether you are CEO of a startup or a first level supervisor in a large company.
Know who you are: Since this step is strictly between you and yourself you need to be brutally frank as to your attitudes towards people, motivation, what’s important, what’s OK to do, etc., in other words, know your MAP! You need to know exactly what you think, are comfortable with the elements you embrace and understand that you need to hire people who will flourish in the environment you create.
Define your cultural goals: Use the knowledge of your MAP to determine the kind of culture you want and write a description including your vision and the specific infrastructure, processes, practices, etc., that are needed to make it reality. Test the attractiveness of your cultural vision by whether you would want to work in a similar culture. If the answer is yes then you can proceed with it; however, if your response is “no way” then you need to rethink what you want because over the long haul there is no way you can sustain a culture in which you don’t believe. Also, people tend to gravitate to people like themselves (likes really do attract). In other words, you will be hired by, work with and hire those with synergistic MAP.
Know what you have: Honestly assess (warts and all) whatever culture currently exists in your company and department (if you have one or more people you have some kind of culture); without a detailed assessment you won’t know what you need to tweak, change, circumvent, ignore or avoid.
Be aware of the cost of change: Changing culture often results in turnover and turnover can be costly no matter the condition of the labor market. People join companies because they feel comfortable and change is rarely comfortable. If they don’t like the end result (or the direction it’s heading) they are likely to start looking. If you are aware and prepared that isn’t always a bad thing; cultural changes can’t happen if employees aren’t willing to change their mindset; worse, those who won’t change will make every effort to sabotage the emerging culture. By being prepared you can not only circumvent that, but often turn the saboteur into a new culture evangelist.
Don’t assume: The human race functions to a great extent on various sets of unconscious assumptions. In the workplace people tend to assume that people with similar educations, experience levels, positions, etc., have similar mindsets, attitudes and philosophies. The next assumption is that based on those similarities everybody would create similar cultures; the third assumption is that the first 2 guarantee people’s willingness to buy into the vision. Predicating acceptance of cultural change on the assumption of deep, unproven commonality is a recipe for disaster.
Don’t overwhelm the troops: Whether you are changing an entire corporation (Gerstner and IBM), creating a culture for your startup, tweaking it within your department or group, or revamping it in your small business, recognize that you can’t just come in, make an announcement and expect people to buy into the vision. Present it in small bite-size pieces and in such a way that people feel they have input in the process, thus creating a strong feeling of ownership. Better yet, listen to the input and adjust if it makes sense.
Communicate and sell—don’t order and tell! Even if your goal is a truly collaborative, nurturing culture that challenges and then helps people to realize their full potential you can’t just walk in on Monday and announce that that’s the way it will be from then on.
First, it’s unlikely that anybody will believe you (talk’s cheap);
second, if you’re new it’s unlikely they’ll trust you (no track record with them); and
third, whether you’re proposing a radically different culture or just fine tuning the current one they have no reason to get on the bandwagon if it means changing.
In the final analysis what you do will carry far more weight than anything you say about your culture.
It boils down to your having the courage to walk your talk.
An angry email berated me for Saturday’s post, saying in part, “Why don’t you ever choose more typical CEOs and cultures to write about? I read blogs to help me manage more effectively and the stuff you talk about is almost impossible to implement.”
The answer, in a nutshell, is that you can’t implement anything at odds with your own MAP (mindset, attitude, philosophy™)
Therefore:
If you don’t believe in a happy workplace where people have fun then there is nothing that Tony Hsieh or anybody else can teach you that will help you create one.
If you stand on your dignity and can’t laugh at yourself there is no way you can implement The Levity Effect.
I could keep giving examples, but you get the point.
I, and dozens of other experts, have said over and over that people can’t sell something they don’t believe themselves.
Nor can they implement cultural features that are out of sync with their MAP.
This is especially true for managers because they typically hire in their own image, so that their team has similar MAP—and the same problem.
If you find yourself on this treadmill, rather than write an angry email or complain to your buddies look in the mirror and know that you can change if you want to.
I’m not sure whether it’s amusing or ironic (or both) but breakout companies all seem to be focused on culture. And when they are successful, no matter the business, they are immediately in high demand to tell others how they do it—think Tony Hsieh and Zappos.
Last Saturday I told you about Nick Sarillo, whose two pizza restaurants in Chicago do $7 million a year with 20% turnover vs. the casual dining industry average of 200%. As a result of the Inc magazine profile he is keynote speaker at the Pizza Executive Summit this summer. I’m sure he’ll be in demand other places. I love the title—“Culture 2.0: Branding your company’s way of life;” think about it.
Along with being a culture fanatic I also believe that anyone can lead given the opportunity, challenge and a supportive culture in which the messenger is never killed.
An NYT interview with Mark Pincus, founder and chief executive of Zynga offers insight into his approach of making all his people CEOs.
“I’d turn people into C.E.O.’s. One thing I did at my second company was to put white sticky sheets on the wall, and I put everyone’s name on one of the sheets, and I said, “By the end of the week, everybody needs to write what you’re C.E.O. of, and it needs to be something really meaningful.” And that way, everyone knows whose C.E.O. of what and they know whom to ask instead of me. And it was really effective. People liked it. And there was nowhere to hide.”
Stories from CEOs of their most life-changing day in their careers. Sometimes the result was promotion to the upper reaches of business, and sometimes a steep fall from grace.
TED has become a phenomenon and it’s on now. Plan to spend some time listening to an eclectic group of creative thinkers.
TED is a small nonprofit devoted to Ideas Worth Spreading. It started out (in 1984) as a conference bringing together people from three worlds: Technology, Entertainment, Design.
The annual conferences in Long Beach and Oxford bring together the world’s most fascinating thinkers and doers, who are challenged to give the talk of their lives (in 18 minutes).
In a final tip of the hat to Valentine’s Day tomorrow, check out substitutes for Viagra that taste great.
Many of this week’s posts will revolve around culture, so it seemed apropos to start the week with some interesting views on culture.
Louis V. Gerstner, former CEO IBM, says,“The thing I have learned at IBM is that culture is everything.”
Many experts are coming to that realization—decades after the average employee figured it out.
They didn’t use that term 30 years ago when I was a recruiter, but candidates talked about wanting to work where they “felt comfortable” and “fit in;” where they were listened to and were happy.
Edgar Schein, a professor at MIT Sloan School of Management, says, “The only thing of real importance that leaders do is to create and manage culture.” “If you do not manage culture, it manages you, and you may not even be aware of the extent to which this is happening.”
Robert Mintz said, “The crimes alleged at Enron were not the acts of a few greedy senior executives, but truly was an indictment of almost the entire corporate culture.”Of course, it was those same greedy execs who fostered that culture.
Jane Howard said, “We believe it’s our responsibility to create a unique corporate culture. If we do that well, we believe we’ll have enthusiastic employees. If we have enthusiastic employees, we’ll have loyal customers, and if we have loyal customers, we’ll have a sustainable business.”
Shades of Tony Hsieh, who built a culture so powerful that other execs pay him to learn how to implement something similar in their companies; “Our No. 1 priority is the company culture. Our whole belief is that if we get the culture right, then everything else, including the customer service, will fall into place.”
Zappos is a long way from fast food, which is often considered the bottom of the cultural heap, but many execs in that industry are hyper aware of culture’s effect. As David A. Brandon, CEO of Domino’s Pizza said, “You can’t overcome a bad culture by paying people a few bucks more,” something that management ought to remember.
Finally, research from Harvard Business School’s John Kotter & James Heskett found that culture has a major effect of the bottom line, “We found that firms with cultures that emphasized all the key managerial constituencies (customers, stockholders, and employees) and leadership from managers at all levels outperformed firms that did not have those cultural traits by a huge margin.”
I think if I read one more op-ed piece saying the path to improving US education is paved with better teachers I’ll scream.
I’m not saying that good teachers aren’t important, but I don’t believe that teachers are the root of the problems.
Before I start with examples, let me ask you this: how well would you perform if you were
terminated for insisting that projects not only be done, but done on time;
poorly compensated in comparison to most people with similar education and experience, but in other industries;
subject to pressure, tirades, insults and having people constantly go over your head to change your decisions; and
shown little respect by your direct reports, indirect reports and management.
Does that sound like an environment that would encourage you to do your utmost? I actually find it surprising that there are as many good, dedicated teachers as there are.
Staying with the current analogy, direct reports = students, indirect reports = parents and management = administrators.
Teaching is like any other form of work—it thrives in a good culture, sags, wilts and gives up in a bad one.
The Dallas Independent School System is a good example of what is happening. DISD is where the teacher was fired at the instigation of parents for being too tough and giving homework—the fact that the kids scored well on tests didn’t count.
It’s DISD that hired new teachers in 2007 with no way to pay them leading to a $64,000,000 budget shortfall that grew to about $84,000,000 in 2008. Their solution was to layoff the teachers—no damage to the administration idiots—maybe they all took math from teachers who passed them rather than lose their jobs.
Her rise in DISD in a span of three years has been frowned upon by some observers. She was making $87,000 as a division manager in 2006 and ended her career grossing around $140,000.
Some DISD trustees had questioned an organizational chart change that left her husband overseeing the department that she worked in. Her boss was reporting to her husband.
Ya think?
And then there is the saga of Taylor Pugh, AKA Tater Tot, who was growing his hair so he could donate it to a charity that makes wigs for cancer patients—but his suburban Dallas school saw it as reason for in-school suspension for violating the district dress code.
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Back to our analogy. How engaged, productive and innovative would you be working for a company where management performed similarly?
Dallas isn’t alone; it has plenty of company across the country.
So before ranting and blaming the dismal state of US education on teachers, check out your district and state administrations—and then look in the mirror.
Shawn Parr, whose company works with large corporations, such as Starbucks and MTV, on innovation wrote a meaty post called Culture Eats Strategy For Lunch.
There is much talk of corporate culture these days, but you don’t often hear about corporate traditions, yet traditions are a part of culture.
Many of this week’s posts will revolve around culture, so it seemed apropos to start the week with some interesting views on culture.
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