What is culture, really? Top
If the old intelligence was what you did (strategy, technology, products); the new intelligence is how you do them. The simplest definition of culture is how you get things done … or more to the point, how you align people toward and execute on your strategy better and faster than your competition.
In the past, culture lived in the realm of “morale” and feel-good fluff. Even today, many leaders who believe in its importance still view it as a “bolt-on” activity best done by HR. Or maybe you’re one of the leaders who see it as a really important element of the business, but lack a clear process and link to performance. Thus, it never elevates to top priority for your stakeholders. You may get it. But when times are tough, it’s one of those ‘nice to have’ line items … aka, cut.
Why is “culture” such a critical asset? Top
As the world moves from the “industrial age” to the “knowledge age” and everything goes global, the rules of business are different. The intangible elements in organizations are the final frontier -- knowledge, people, teams, and how they are organized, solve problems, and are empowered to make decisions. We’ve tapped the power of the industrial model: Efficiency in operations doesn’t come from great technology, it comes from how people use technology.
In the complex arena of business today, leaving culture to chance is a dangerously naïve and outdated viewpoint. You need only to turn to dozens of examples of winners vs. losers in the same industry – where the playing field is level but one company goes beyond luck and strategy to leverage the intangibles: Walmart didn’t beat Kmart only on low-cost strategy. Southwest Airlines may be one of the most famous examples of the power of culture: Yes, they have a great strategy and business model … but the big airlines can’t begin to compete with the power of that corporate culture even while they’re trying to copy the efficient, effective business model (Think “Ted”).
Why is culture important to me? Top
Culture is either helping or hindering your business outcomes.
The question is not whether culture is important, or even whether it’s good.
The question is whether it’s being managed consciously and effectively to align with your strategy.
Creating cost efficiencies and streamlining operations remains a top priority for senior executives. But this is only one side of the equation – being efficient alone does not drive growth. According to a global study by Mercer-Delta Consulting top concern of 223 leaders surveyed in 2005 are “increased competitive pressures” (83%) “responding to rapidly changing market conditions (67%), “failure to innovate” (60%), and “satisfying customer expectations” (52%). They further go on to report that today’s organizations are not investing in developing multi-skilled leaders who can effectively adapt to these changes in globalization and increased competitive pressure.
What does “aligning culture” mean versus changing it? Top
Aligning culture to strategy and linking it to business performance is easier to explain to your stakeholders, more straightforward, and higher payoff than a full-scale “culture change” process.
“Culture change” has been viewed as changing the organization’s DNA – a painful and often impossible process. Aligning culture with strategy makes it more actionable – and is the key to balancing seemingly impossible paradoxes in your business:
- Short-term performance v. long-term sustainability;
- Centralized command v. employee engagement;
- Being adaptive and flexible vs. being consistent;
- Quality, speed, value, and price.
How am I supposed to work on “culture” along with my existing priorities? Top
Culture is not another “bolt-on” project, it’s about ensuring that HOW you work is in alignment with what you say is important. Most of our clients find significant gains in productivity, and free up time, energy and resources in this alignment process. Ultimately, most companies need to NARROW to fewer areas of focus that have a bigger impact – that’s the outcome of aligning culture with the vision and strategy.
How does it help me do my job better? Top
We develop a cadre of leaders, change agents, and supporters who help you. Get everyone on the same page toward a common vision, strategy and goal. In most of the organizations we work with, there is lack of clarity about strategy top down, the pathway to achieving it, and the priorities leadership is committed to in getting there. Applying our methodology will make it easier for you to know what to focus on and create a more balanced skill base in your people to get you there.
What is the “magic formula” for improving it? Top
The answer lies not in complicated theories or a one-size-fits-all prescription that works for everyone. The answer lives in a simple but profound truth we have discovered in 20 years of experience:
If you make people create it, they’ll own it.
We have spent our entire careers successfully teaching organizations and leaders precisely how to help people take ownership for change. The only way to get there is for leaders to understand it, commit to it and reinforce it, versus expecting it to happen through a quick speech or hand-off to HR.
How does culture actually “impact” business performance? Top
The power of corporate culture lives in two indelibly linked principles:
- Measure it – there are sophisticated assessment tools available today that allow you to measure your culture in direct relationship to how it is driving the key performance measures in your business:
- Return on Equity, ROA, ROI
- Sales Growth and Market Value
- Customer Satisfaction
- Product and service innovation
- Employee satisfaction
- Quality
- Engineer it – like any process improvement, culture needs to be engineered precisely to become the accelerator for your strategy – the perfect mix of people, process, and disciplined execution.
Summary Top
Especially during periods of change, your company’s culture may be the single most important leverage point in your business. It is the foundation on which everything is either done well or not – product innovation, operational efficiency, customer/relationship management, implementation of technology, or global expansion.
If you don’t believe it, wait and see. If your competition figures it out first, you’ll have your answer.
If you’re ready, let’s talk. The payoff is waiting.
