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Corporate Culture

BlogCultureCulture Series

Culture – Consistency: Agreement

by Ron Potter December 19, 2019

Agreement that leads to commitment is a long, arduous process.  It requires building great teams that listen to each other, respect each other and use a great process to reach agreement.  Agreement leads to commitment which leads to better execution.  This commitment happens in the face of initial positions that may be counter to the final agreement.  Reaching agreement is hard work.

Culture Elements

Items that the Denison Culture Survey asks about include:

  • win-win solutions
  • consensus or agreement is reached on difficult issues
  • while the process may be long and arduous, it’s always easy to reach agreement in the end
  • is the agreement in line with the core values
Intact Teams

These questions are focused on teams that work together.  We’ll look at building coordination and integration across the corporation in the next blog post.  But coordination across the organization never happens if we aren’t able to reach agreement within teams first.

Agreement and commitment were the subjects of a series of blogs that I wrote in the first half of 2019 on building great teams.

Respect

Reaching agreement within teams requires a great deal of respect for each member of the team.  Good leaders should expect that each member of a team has either a slight or dramatic different point of view.   This diversity of thought is what leads to great decisions.  But only if there is respect within the team for each person’s point of view.  If there is an element of right and wrong or someone believes they know the “truth” while everyone else simply has a different perspective, a true agreement cannot be reached.

Culture Survey

The culture survey does a great job at pointing out the symptoms of agreement or disagreement.  It doesn’t actually help us solve the problem but clearly identifies if a problem exists.  If the culture survey indicates there is a lack of agreement, that should serve as a big red flag that lots of internal work is required to build up the respect and processes of teams.

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BlogCultureCulture Series

Culture – Consistency: Core Values

by Ron Potter December 12, 2019

In just about every company I’ve worked with over the last 30 years, their values were printed somewhere.  Some times they’re in the employee handbook or other printed document but the majority of the time they’re printed in a beautiful art form on the front wall in the reception area.  They were there for everyone to see.  But employees don’t see them.  They probably saw them for a few days after the reception area was remodeled or repainted but then they walk right past them every day without notice.

Actions Speak Louder than Words

I’m not sure who first spoke those words but I believe it came from direct observations.  People will say almost anything for various reasons.  But their actions demonstrate what they really believe.

Printed words mean nothing in the face of behavior.

Words of the Core Value Culture Survey

Some of the words from Core Value questions include:

  • managers practice what they preach
  • there is a characteristic management style
  • a consistent set of values
  • held accountable
  • ethical code guides behavior

You’ll notice that only once do words come into play.  They practice what they preach.  And the focus is not on the words but on the practice.

Printed Words Mean Nothing

The only time printed words become meaningful is when they’re violated.  Few people believe words.  Everyone believes actions and behaviors.

One of the simplest explanations I’ve seen of corporate cultures and values is a straight line drawn left to right.  This line represents the current level of values or culture.  This is where the “bar” is set.  If someone violates one of those values and there are no consequences for that violation, the bar was just lowered.  Corporate Culture is less valuable when that happens then it was prior to the lack of accountability.

Corporate leaders must be vigilant in protecting the values and culture of the organization.  It slips away very rapidly through simple acts of violation with no accountability.

Bankruptcy

I’m reminded of the old story about someone who went bankrupt.  When they were asked how that could happen they said

Well, I had a missed payment here, made a bad decision there, made a bad loan to an old friend and pretty soon I was bankrupt.

Bankruptcy, like lost values, doesn’t just happen one day.  There were little things along the path that were pointing toward an eventual bankruptcy.

Core Values in corporate cultures are not just lost one day.  There are always little things along the path pointing toward the bankruptcy of values.

Mile Markers

I was once consulting with a division of a large corporation.  Things were going quite well at the moment.  Sales were up.  Marketing seemed to be clicking with potential customers.  Productivity costs were down.

But my final report after spending two weeks with the leadership team said that they were in trouble and headed for disaster.  I based that assessment on what I observed as the constant erosion of Core Values even over a short two week period.

My report fell on deaf ears.  All they could see were the positive numbers and metrics that were happening at the time.  They wrote me off as not knowing what I was talking about.  Two years later they were hemorrhaging.  Most of the leaders had left, numbers were bad and getting worse.

It turns out that was just the tip of the iceberg.  The leader of that group left when times were good to become president of another company.  He only lasted a couple of years.  The division went from being profitable to being sold.

Pay attention every day to Core Values.  Don’t let things slide.  Don’t just let “this one” go!  You will slip into bankruptcy quicker than you think.  Protect the Core Values with every bit of your fiber.

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BlogCultureCulture Series

Culture – Involvement: Adaptability

by Ron Potter November 28, 2019

Adaptability and Involvement

Adaptability and Involvement are the two quadrants that make up the left side of the Denison Culture Chart.  This side of the chart identifies “Flexible” cultures.  Cultures that adapt well.  Cultures that respond quickly to customers and markets.  In today’s fast-paced environment, flexibility is a requirement.  (Just as a heads-up, we’re going to talk in a couple of weeks about Stability being a required element as well.  Makes your head hurt doesn’t it?  That’s just one of the reasons that Leadership is hard.  It doesn’t just come with the title.

External Focus

So now we’ve seen that Mission and Adaptability (top of the chart) indicates an External Focus for the companies.  Companies strong in these two areas tend to sustain growth and are constantly listening to and looking at the marketplace.  They’re good at spotting the next big thing in the market place and making decisions that help them take advantage of those coming changes.

Flexible

The Flexible Cultures (Adaptability and Involvement noted above) indicated companies that are constantly changing.  Or maybe it indicates that the companies are good at working in ever-changing markets.

One company had a culture score that was lowest in the Vision and Strategic Direction and Intent areas while being quite strong in all of the Flexible areas on the left side of the chart.  We asked about the low scores in the Mission quadrant, wondering how they kept going without much vision or strategic thinking for the future.  They indicated that their market was changing so rapidly that figuring out a vision and direction was almost useless.  If they didn’t keep up with the rapid changes in the marketplace, they weren’t going to be around to worry about long-term (even 24 months) vision.  They were right.

Focus

In general, it’s always good to expand the Culture Survey as much as possible in every direction.  However, there are “seasons of life” and moments of focus that may require expansion in a particular area.

Maybe you’re in need of growth which will require an external focus.  You may need to expand some or all of the Vision and Adaptability quadrants.

Maybe you’re in the need to keep up with or get ahead of a rapidly changing market or a disruptive competitor.  You may need to focus on the Adaptability and Involvement quadrants (Flexible).

Be aware of your surroundings, history, and future.  Which quadrant needs the most attention at the moment?

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BlogCultureCulture Series

Culture – Involvement: Summary

by Ron Potter November 21, 2019

Empowerment, Team Orientation, and Capability Development.  These are the three areas that make up the Involvement Quadrant.

For the most part, each of these three areas requires the right attitude or maybe attitude adjustment by the team leader.

Only the leader can provide the Empowerment (Delegation) required for individuals to take responsibility and accountability for their particular area.

While team members can create a great Team Orientation, the leader has the opportunity to destroy or hinder those efforts with a single spoken word or email response.

Capability Development can only be provided by the leader but more importantly, the team leader must know the “future potential self” of each member to get the most out of that development.

Great Cultures require Great Leadership

Isn’t it interesting that so much of the Involvement Quadrant requires great leadership?  While the overall emphasis here is about corporate culture, it just doesn’t happen without great leadership.

Maybe that’s why Culture is one of the three elements of my Team Leadership Culture company name.  Making it last on the list doesn’t diminish its value.  In fact, building a great culture should be the goal of every leader and team in the company.  Great Corporate Cultures are not less important than Team and Leadership, it’s the goal of Teams and Leaders!  Without a great culture, the corporation never lives up to its potential.

Customers Know

Poor cultures are immediately spotted by customers.  Have you noticed walking into a retail establishment you seem to immediately sense good and bad cultures?

In one experience I was being helped by a person who was dressed like they just came from a skateboard park.  Nothing against skateboard parks, I have grandchildren who enjoy them and are good skaters.  But it sends the wrong message to customers in a retail store.

When I inquired about a particular product the person could only say “I think its waterproof.  Sam at our other store knows more about this.”  When I asked if he could call Sam in the other store his response was “I don’t have the number for the other store.”  End of conversation.  And end of my ever again entering that store.  They obviously had a culture that was not customer-focused.

Customers know!

Let’s Explore

After looking at the unique combination of the Involvement and Adaptability quadrants, the next few blog posts will explore each part of the Consistency quadrant.  Join me.

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BlogCultureCulture Series

Culture – Involvement: Capability Development

by Ron Potter November 14, 2019

When I see low scores in the area of Capability Development, they seem to be driven by a couple of issues:

Leadership View

The leader and corporation almost always feel like they’re providing a great deal of training, education, and skill development opportunities and therefore don’t understand why the employees give them low scores in this area.

Employee View

Yes, the corporation gives lots of “training” but always where the corporation wants them to develop, not in the area where they want to grow.

Corporations often:

  • bring in trainers for the day
  • provide seminars
  • even provide opportunities to go off-site to one of these training sessions, seminars, or continuing education.

BUT, all of this capability development happens in the area where the company wants the employee to improve.  And it’s directed at improving the employee in the area where the corporation has them positioned.

One person said to me “I’m grateful to the company for providing me education and skills that have moved me to the top of the accounting department.  It provides me a great salary.  BUT, even though that’s an area where I have skills, that’s not the area where I have a passion.  I would much rather learn about and have an opportunity in the marketing area”.

I worked with Dr. Cloraire Rapaille for a few years.  He wrote a great book titled The Culture Code.  One of the Corporate Studies that Dr. Rapaille did for several major corporations was to help answer the question of what motivates people in the corporate world.  I believe it was in that corporate study where Dr. Rapaille coined the team “Future Potential Self.”  He discovered that people are not motivated by money, public recognition, or other forms of corporate motivational efforts.  People are motivated by what helps them get to what they see as their future potential self.

In my story above, the person’s “future potential self” was in marketing, not accounting.

Future Potential Self

So what does it take to provide training for a person’s Future Potential Self?

As a leader, you need to know what the Future Potential Self of your team members!  It requires that the leader get to know their team members on a human level.  Not just knowing their skill level.  Not just knowing their competencies.  But knowing who they are as a person.

One of my clients told me a story about putting in some long-hard hours on a particular project and yet felt very rewarded by their boss when the project was over.  When I asked what made them feel that way, they told me that their boss bought them the exact guitar they had been dreaming about.

Was it expensive?  It was very nice quality, but it was not considered a really expensive high-end guitar.

So what made it so special for them?

  • My boss knew that I loved playing in the church praise band.
  • My boss knew that any extra money we had right now went to caring for our new baby.
  • My boss was listening enough to know exactly which guitar I was desiring.

In short, their boss knew them as a human being!

That’s capability development.  Yes, they provided training courses to help them get better at their job.  Yes, they were offered off-site education to help improve their skills.  But, when added to the fact that their boss knew what they were desiring personally, that’s what improved the scores in Capability Development.

Know your people!  It makes everything else more valuable.

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BlogCultureCulture Series

Culture – Involvement: Team Orientation

by Ron Potter November 7, 2019

The Team Orientation of Involvement contains several wonderful elements.

  • Cooperation is Encouraged
  • People are not isolated pieces
  • Teamwork is used over Hierarchy
  • People see the relationship between their work and the work of the team (teams)

Problem Solving

I think one of the first things that get in the way team orientation is that corporate leaders and members are problem solvers.  Don’t get me wrong, problem-solving is a wonderful skill and is the reason why most people get promoted in organizations.  But it can also be the first thing that gets in the way of good team orientation.

Email Overload

As a consultant, I was often asked how to reduce the amount of email that was a burden to everyone.  I always looked at three things:

  1. Why was the email sent?
  2. What was the response?
  3. Who was cc:d on the email?
Why was the email sent?

The answer to this question was always something like:

I gave this person an assignment and they were looking for an answer or a solution.

What was the response?

The answer to this question was almost always – I sent them the answer or solution.

Who was cc:d?

The answer to this one always seemed a little more cynical.  It would go something like – Everybody and their brother

Immediately eliminate 40% of email

The solution to almost all overload email is accountability.  This incorporates questions one and two.

I would suggest to the leader that they stop reading email with the intent to respond.  And start asking themselves the question “Why am I receiving this email?”

Because corporate leaders are good problem solvers, their immediate (non-thinking) response is to figure out the problem and send the answer.  However, if they look at every email with the first question being, “Why am I receiving this email?”  their response becomes different than providing a solution.

Why am I receiving this email?

Some of the responses I’ve heard from the Leader:

  • I don’t have the right expertise on the team
  • The person sending the email doesn’t like the answer their getting from the team
  • The person doesn’t want to be held accountable for the solution.  Now they have an email to prove that I gave the solution, not them.

This last answer is hardly ever seen by the leader (they’re problem solvers.  They feel good about themselves for giving answers).  But it’s the reason many emails are generated.  It’s an easy way to get the monkey off their back and onto the back of the leader.  And the leader seldom notices.

Answer with a different response

I suggest that the leader answer the email with a simple question, “Why are you sending me this email?”

40% of email will cease!

This response sends the message “I’m not accepting the monkey”.  Figure it out.  It’s why I gave you the job.  Come to me with solutions, not questions.

Notice that this one response touches three and maybe all four of the Team Oriented Culture elements.

  1. Cooperation is Encouraged – It encourages the individual to work with their peers.  Cooperate.  Engage!
  2. People are not isolated pieces – It’s not just one person solving a problem (or their boss solving it for them).  Again, they need to engage with the team and peers.
  3. Teamwork is used over Hierarchy – I’m starting to sound like a broken record here but it’s not a top-down solution.
  4. People see the relationship between their work and the work of the team – Decisions are not made in isolation.  It’s not just the boss who sees the big picture.  The individual must understand it as well to provide a workable solution.

I used the example of email but it can be any electronic media.  In fact, texting adds a sense of urgency that makes the leader feel they must give a solution rapidly.

But, it can also apply to one-on-one meetings and even happen in team meetings.

Solution or Team Orientation

This idea that the leader should also be the problem solver is at the heart of most of these team orientation issues.  It’s a tough habit to break.  Don’t just solve the problem,

  • Encouraged cooperation
  • Make sure everyone functions as part of the whole, not just individual pieces
  • Don’t perpetuate the hierarchy, build the team
  • Make sure everyone understands how their actions and solutions impact the team

Create a team orientation, you’ll get better involvement.

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BlogCultureCulture Series

Culture – Involvement: Empowerment vs Delegation

by Ron Potter October 31, 2019

Empowerment vs. Delegation

Last week my blog post spoke of Empowerment in great cultures.  I need to take a short side trip here to talk about the differences between the words empowerment and delegation.  I’m not going to suggest that the words need to be used differently than they are today, that would be too large of a task.  But I believe it’s crucial that we understand the difference and also understand why one is required before you can accomplish the other.

These two words have become confused and misused in today’s language.  We currently view empowerment as a good thing and delegation as a bad thing.  I believe you need to empower before you delegate, and delegation is the higher form of the two words.

Let’s go back to the original definition of the two words and understand what they mean.

Empowerment

The dictionary says “To promote the self-actualization or influence of – make more confident – give someone a greater sense of confidence or self-esteem (Italics are mine)

Empowerment helps a person increase confidence, self-actualization, and self-esteem.  Empower is facilitated by allowing you to influence me on decisions and directions.  In other words, if I’ve Empowered you to run a portion of an organization, I will allow you to:

  • make all of your plans
  • run them by me to influence decisions to be made.

However, it’s still clear that the decisions are mine.

Advantages of Empowerment

There are a few advantages of using empowerment over a period of time:

  1. The individual grows and gets better as you question and learn the reasons for their planning and decision making
  2. You, the one granting empowerment, begin to learn how this particular person thinks and approaches issues.  It may be very different than you, but that doesn’t make it wrong.
  3. You may learn something along the way (see comments below about hiring experts)
  4. You gain a comfort level that the person is capable of tackling projects
Hiring the Expert

We often hire a person who is an expert in a particular area.  But, you must be very careful about how you grow and nurture that person.  If you start asking questions about how or why they reach a certain decision, their reaction might be:

  • Why am I being questioned?  I’m the expert.
  • Does this person trust me?
  • I can’t stand the “micromanagement” much more.  I may have made a mistake in taking this job.

When you hire an expert or someone with considerably more experience in an area than you possess, make sure you explain the reason for empowerment and when you expect to move up to Delegation.

Empowerment needs to take place in this situation for a couple of reasons:

  1. You need to learn and grow in this area.  This is the reason you hired an experienced expert.
  2. You need to know the key indicators of the job or project.  Is it going well?  Are we in trouble?  How will I know as soon as possible?  When do I need to explain a bigger picture or other influences where this person may not have an awareness?

If you let your “expert” know all of this ahead of time, they’ll be better equipped and more willing to answer your questions.

Delegate

The dictionary says, “Give a responsibility or task to somebody else – Assign responsibility or authority – Commit or entrust another.”

Delegation carries a much higher level of responsibility than empowerment.

In U.S. Embassies, the Ambassador is our official representative.  The Ambassador is our delegate.

I believe delegation is the higher state of the empowerment-delegation pair.  Delegation means you have been entrusted with a piece of the business to run as you see fit.  However, like a US Ambassador, regular check-ins are expected.  That is why we empower first so that key indicators can be understood and approved before the assignment is delegated.

Do they know the difference?

I’ve often asked leaders if they can tell me which direct reports are empowered and which they’ve delegated.  After understanding the definitions, they will tell me who they’ve delegated and who is still empowered.

My next question is, “Do your direct reports know if they’re empowered or delegated?”  The answer is usually no.  This causes confusion.  Each person is wondering why they are treated differently from another person.  One of the positive things I’ve seen happen when an explanation is made, the empowered quickly ask, “What do I need to do to have that delegated to me?”  This is the perfect question.

Misunderstood and timing

Because the original meaning of these words has been lost, I’ve seen managers and leaders assume that if they are going to empower someone, they should look the other way and let them do their thing.  That’s an abdication of leadership.  Leadership is still required in both empowerment and delegation.  Don’t sacrifice your role at the alter of empowerment.

The other issue is timing.  If you like having your direct reports continually in an empowered state, that is an indication that you’re letting your ego get in the way.  Delegation can be scary but is required for a healthy organization.  On the other hand, if you’re pretty good at getting people delegated (they’ll think of you as one of the best bosses they’ll ever have) and you still have someone in an empowered state even after a year of attempting delegation, you probably need to help that employee move elsewhere.  If they’re not willing or capable of accepting delegation, they may not be the right person for your organization.

Be Aware

Again, I’m not trying to change how language is used, but I do believe it’s important that you understand the differences to be effective.

The Denison Culture Survey (and almost everyone else) is using the word empowering.  The concept is correct.  Having people engaged, empowered, and taking responsibility for their work will have a positive impact on your organization.  Make it happen.

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BlogCultureCulture Series

Culture – Involvement: Empowerment

by Ron Potter October 24, 2019

Organizations with highly empowered employees have a couple of things in common:

Processes Pushed Downward

The first common point is that processes are pushed down the hierarchy to the lowest possible level.  When I say processes, the survey measures explicitly Information, planning, and decisions.

This point starts with the genuine belief that the information needed for good planning and decision making resides with the people closest to the action.  I used the words “genuine belief” because I’ve seen too many leaders and leadership teams proclaim that the needed information resides and is better understood at levels below them but their ego and position keep them from letting go of their own beliefs and assumptions.  They also believe they are the leaders of the organization because they are smarter and know better what to do then those who have not yet reached their level in the company.  If you’re a member of a high-level team, be very, very careful that you don’t let that ego prevent you from hearing and understanding the information from the people who are closer to the action.

During my blog series on being a Leader, I talked about the Sweet Rewards of Humility.  You can follow the link below if you have more interest.

My point is, you must be a humble leader in order to empower your people and organization.

Positive Impact and Involved

The second thing that organizations with highly empowered people have in common: Employees believe they can have a positive impact and are therefore highly involved in their individual work and the work of their team.  They are good at integrating their work with that of their team.

Integrating Work with Others

The key to positive impact and involvement? Integrating with others.  It takes good teamwork.  We’ll look at the elements of a Team Orientation in a future blog.  But for now, let’s remind ourselves of the aspects of building a good team:

  • Truth: Being able to speak the reality of a situation.  This ability must reside both in peer-to-peer relationships as well as a top-down, bottom-up relationship.
  • Respect:  We must respect the opinions and observations of everyone.  When people feel respected, they are willing to share and integrate their work with others.
  • Elegance: Good integration of work means reducing the friction caused naturally between different parts of an organization.
  • Commitment:  Integration means that sometimes, other parts of the organization must benefit.  It is possible to improve each part of the organization but not to maximize each part of the organization.  A good team requires a commitment to the best for the overall company, not just a particular part of the organization.
Empowerment is required for good involvement.
Good involvement is a requirement of a great culture.

 

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BlogCultureCulture Series

Culture – Involvement

by Ron Potter October 17, 2019

We’ve looked at Mission and Adaptability.  Individually they’re each required to create a great culture.  But, we also looked at them as a pair.  The top of the chart says “External Focus” meaning that these two quadrants look to the outside world.  They are not focused on things internal to the organization but are focused on the future with Mission and on the customer and industry needs and changes with Adaptability.

Today we’ll begin focusing on the third quadrant, Involvement.  As a preview of things to come, you’ll notice that the left side of the chart is labeled “Flexible”.  This means that the two quadrants on the left side of the chart, Adaptability and Involvement help create very flexible organizations.  We’ll talk more about that when we look at Involvement in summary.

Like all of the other quadrants, Involvement has three subsections:

  • Empowerment
  • Team Orientation
  • Capability Development

There seems to be an abundance of “Engagement” surveys in the market place today.  I believe the root of these was based on the research of the Gallop Organization.  Their premise is that the more employees are “engaged” the more productive they are; leading to a more successful organization.  I agree with their premise.

I also agree that the Denison organization’s focus on empowerment, team orientation, and capability development direct the company and it’s employees to specific areas of engagement that have the greatest impact.  It’s not just engagement for engagement’s sake but focused engagement by empowering people, equipping them with the right capabilities and helping them work as united teams.

There is a lot to learn in this quadrant and as with the others, it’s easy to declare but difficult to implement.  Doing so will help you create a great corporate culture.

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BlogCultureCulture Series

Culture – People Quit Organizational Cultures!

by Ron Potter October 10, 2019

I read a recent blog by Christie Lindor.  The title of that post was

“People do not quit companies, managers, or leaders – they quit organizational cultures.  Here’s why.”

In her post, Christie wrote, “I had always believed that people quit leaders, not companies.”

I also believed that statement and observed it as well.  Christie then goes on to say

But then I realized that there is probably another way to look at it.  It is more than just leaders.  Organizational culture, in its simplest form, is an ecosystemic mashup of values, beliefs, underlying assumptions, symbols, rituals, attitudes, and behaviors shared by a group of employees and driven by leadership.” (Italics are mine)

While I don’t disagree with Christie, I think there are important distinctions.

Beliefs and Assumptions

In the Denison Culture Survey chart, there is a center circle labeled “Beliefs and Assumptions”.  While that little center circle is often overlooked, Dr. Denison is making it clear that it’s a set of corporate beliefs and assumptions that drives the culture.

In my Culture Introduction blog post I stated:

What is Culture?

A dictionary definition says, “the set of shared attitudes, values, goals, and practices that characterizes an organization.”

We hear a lot about a corporate culture being toxic or exciting or silo-ed or productive.  But in my mind, many of those conditions have more to do with Teams and Leadership than they do with Culture.

    • If there is a toxic environment, that’s usually caused by poor leadership that is ego-driven rather than humbly driven.
    • Exciting environments come from leaders and teams developing people to face difficulties and obstacles in innovative thoughtful ways that utilize the skills and experiences present.
    • Silo-ed environments happen when teams are unable to work through their difference and reach a committed direction or approach.
    • Productive environments exist when teams learn how to elegantly use the resources they have to get the most out of an organization in a simple way.

Focusing on “culture” doesn’t cure any of the identified difficulties.  Building better teams and leadership improves those issues.

I believe Christie and I are saying the same thing.  However, I believe it’s important to distinguish between Team, Leadership, and Culture.  It’s difficult to correct issues of “Culture” without acknowledging that its Leadership and Teams that cause the Culture issues.

 

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BlogCultureCulture Series

Culture – Adaptability: Summary

by Ron Potter October 3, 2019

It’s easy to see but often challenging to implement an adaptable organization.

It takes

  • Learning
  • Listening
  • Changing
  • Humility
  • Respect

Humility is required because it forces you to suspend your belief about what is the right direction to learn, listen, and change.

It also requires respect.  I’ve talked about Jordan Peterson and his 12 Rules for Life.  One of my favorite rules is number nine, which states “Assume that the person you are listening to might know something you don’t.”  Live by that rule alone, and you’ll experience change and growth.

But, now that we’ve looked at the first two quadrants, Mission and Adaptability, I would like to think about them as a pair.

Mission and Adaptability are at the top of the Denison Culture Survey.  If you look at the very top of the circle, you’ll see

the words “External Focus.”  External Focus means that the quadrants of Mission and Adaptability look “outside.”  They are not focused on what goes on internal to the organization, but what is going on beyond the walls of the organization.

Organizations who have high scores in these quadrants at the top of the chart tend to be focused on and achieve growth and market share.

What I find interesting is the research behind these two quadrants.

Research indicates that during down times when market share and growth shrink, companies who have high scores in these two quadrants seem to be less impacted by the negative situation.

If growth and market share is your goal, make sure the people of your company score you highly in these two quadrants.

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BlogCultureCulture Series

Culture – Adaptability: Creating Change

by Ron Potter September 26, 2019

One of the more impactful aspects of this Creating Change sections is summed up in the statement:

“We respond well to competitors and other changes in the business environment.”

One of my first experiences with the Denison Culture Survey was with a company that had been the undisputed leader of their industry for over 100 years.  However, over the last few years, they had been losing market share to new start-ups in their industry.  By the time they needed outside help, things had fallen to critical points, and their profitability had all but disappeared.

First Culture Survey

When we saw the results of their first survey, it was immediately obvious from a consulting point of view.  They scored highest in the Consistency quadrant.  Meaning they had been doing things in a very consistent way for over 100 years (we’ll look at the Consistency quadrant in more detail in future posts).

They scored lowest in the Creating Change section of Adaptability.

And on the statement “We respond well to competitors and other changes in the business environment,” they scored in the bottom 10% of all companies.  They did NOT respond well to competitors and other changes in the business environment.

Why had they not responded?

After gathering the results of the survey, we displayed the overall graph of their results.  The leadership team went silent after reviewing the results.  It was not because they were in shock.  It was because the results revealed what they suspected was the problem all along.   They had continued to function just as they had done for over a century in spite of knowing that the market place was rapidly changing around them.

But, this visual representation of their situation allowed them to open up and be honest with each other for the first time.

We’ve always done it this way

Their first response was to admit they knew they were in trouble over three years ago when they first experienced a loss of market share and a drop in their profits.  At their annual leadership retreat, they decided that the drop would be overcome if they just buckled down and did a better job.  After all, they had been successful for over 100 years.  If they just did a better job of doing what they did well, they would pull out of this tailspin.

We don’t have a better solution

At their leadership retreat two years ago the results had continued to drop but they decided it must be a temporary issue and if they just continued to stay focused and work harder, this would be overcome like many dips throughout their history.  They didn’t have a better answer.

Now we see the problem

While they were stunned with the results of their culture survey, you could almost detect a sense of relief on many of their faces.  They were all exhausted from working hard and long.  They had sacrificed their personal lives including family and health just because they didn’t have a better answer.  Now they could see the issue more clearly which allowed them to talk about and work toward a more feasible solution.

Coherent Change

Other areas of the Creating Change section referred to issues such as:

  • Flexibility
  • Improved processes
  • New ways of doing things
  • Lower the resistance to change
  • Get the entire organization pulling together in the new direction

These things they could begin to plan around.  The Culture Survey had added a new vitality to the leadership team.  You could feel the energy rising in the room as they began to talk about and plan for change and a new way of doing things.

Improvement

While they never fully recovered the overwhelming market share they once held, they did become a much more competitive force in the market place.  They were suddenly fighting for and scrapping for every inch of growth in the market place, and the “new” competitors were fighting a new approach from an old competitor.  They were now forcing changes in the industry, and the “new” competitors had to respond.

Blockbuster

If I tried to list all of the companies that were once a force in the industry but no longer existed, there would be too many to include in a blog.

I read the other day that Blockbuster (the DVD company with thousands of retail stores) had a chance to purchase Netflix for a very reasonable amount.  They passed.  It would have eaten into their retail store, walk-in business.

Today, Netflix is one of the hottest companies in the market place.  Blockbuster doesn’t exist.

Change or Die

We’ve used this adage many times in the last several blog posts.  But it’s true.  If you’re not changing and adapting, you will soon be nothing more than an empty store in a strip mall with a faded outline of your logo and former glory.

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