Culture - Where do I Start?

Most CEOs and company executives in North America now recognise that improving their corporate culture would have a very positive impact on their business' performance. They recognise that culture is up there with strategy, marketing, brand, finance, and IP in terms of importance. And most also admit that their culture is not where it needs to be, and a major part of the reason for that is that their executive team does not give it sufficient priority or attention. 

So, if company execs recognise the importance of culture, why don't they give it more priority and invest more time in it?  Part of the answer is simply that they don't know where to start.  Culture is all pervasive, but it is difficult to measure directly, and seemingly impossible to control; and in a business world where we like to manage through measurement and control - that makes culture a slippery subject for most management teams. It becomes a problem for another day. 

But there are things you can do right now that will have a significantly positive impact on your culture.  We know that companies with strong culture perform better in almost all respects, they attract and retain good people, and they are more resilient in times of challenge. So, below are 3 areas to think about, and act upon, that will positively impact your culture.  Even if you make only slight changes, they will move your company in the right direction. 

Culture is experienced by your staff, and what they experience affects their performance individually and collectively. A recent study by MIT Sloan Management School identified several cultural areas that most significantly affect employee performance. Here, they are grouped into 3 distinct areas in order of impact. 

1 - Respect.   First and by a VERY significant margin, the foremost important element in a positive culture is RESPECT. Do your staff feel respected? Do they feel recognised for their value to the organisation - or are they mere cogs?  Do they feel they are treated as people, or resources? Do they feel they are treated with courtesy and dignity? Do they feel that their opinions, concerns and ideas are listened to? How do you know what they are feeling? 

2 - Leadership.   Here we are talking all levels of management who have responsibility for other people; however, the more senior the person in the organisation, the more significant the effect.  There are 2 elements to leadership:

• Support.  Do leader managers work to create the working environment in which your other employees can do their best?   Do they help and support them, encourage and protect them, guide them and develop them?
• Behaviour.  Leaders are always watched - that's how employees learn cultural norms.  Do you have your company values listed on the wall or on the website for all to see?  If so, do ALL of your managers and executives live by those values and demonstrate those behaviours all the time? - most employees expect their managers, especially senior ones, to not live up to the espoused values, but when they do, this has a very positive impact on overall mood.  Conversely, managers who create toxic environments, and more senior managers who don't intercede, generate a lot of bad or negative feeling.  Awareness of unethical behaviour is the most damaging. 

3 - Compensation and Benefits.   While important, this is less so than the previous 2, but compensation ("increase their salaries") is often where management teams put their effort to help retain people. While salary is important to a point, it is other elements that show and demonstrate care and personal support that win out: 

• Benefits that allow people to stay fit, healthy and well or reduce concern about retirement. 
• Perks, the most important of which is, yes - Coffee, often create the opportunity for social connection, friendships, creature comforts, and fun. 
• And the opportunity to learn and develop; in an agile workforce, the ability to constantly develop and hone skills and grow personally and professionally is critical.

 Don’t delegate this to HR – it is not their role. Everyone in your management team - beginning with you - can start to make small tweaks in all of these areas. You don't need to change everything at once. You don't need to make big changes. You don't need to spend a lot of money. Just lead by good example. A simple small felt change can have a big effect. Start right now - Just Do It. If you want to know more about culture, visit our 'What is Culture' resource page. We also can help you with a cultural assessment if you want to know where you stand. And, please do give me a call or send me an e-mail if you just want a quick chat about your culture or ideas on where to start.

See you out there

Graham 

Join me on LinkedIn