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Culture Series

BlogCultureCulture Series

Culture – Mission

by Ron Potter July 25, 2019

Everyone has a different definition of Mission, Vision, Values, etc.  I’m not here to promote one definition or the other, I’m just going to use the definition found in the Denison Culture Survey.

Mission

Mission is the title of the first quadrant.

“Do we know where we are going?” is how Denison describes this quadrant.  Whether you call it mission, vision or whatever, that simple question gets to the heart of this quadrant.

Clarity and Alignment

Do the people, including the leaders, know where they’re going?

  • What are they trying to accomplish?
  • Do they see the big picture?
  • Are they simply trying to accomplish tasks?
  • Can they give the “elevator” speech about where the company is going in the future?

There’s an old story about the early days of the space mission.  As one of the scientists was leaving the building, he walked past a janitor sweeping up in the cavernous assembly building.  Wanting to be friendly, the scientist asked, “What are you doing there?”  The person sweeping up replies “Haven’t you heard?  We’re going to the moon!”  Regardless of the position in the company, every person knew the mission of the company.

Vision

Vision is about keeping an eye on the long-term vs the short-term.  I’ve seen many corporate leadership teams make decisions that no one thinks will be healthy for the company long-term, but it will help them meet quarterly reporting to wall street and investors.

Some of the corporate leaders I’ve talked with this about will reply that their mission and vision is to make money.  I’m sorry, but it’s not!  Simon Sinek, one of my favorite authors and bloggers, clearly states the profits are not “why” we do something, profits are a result of what we do.  It’s always a result.  It’s only a result.

Goals and Objectives

I love golf analogies.  They speak to so many aspects of life.  One of the differences between average golfers and really good golfers is their image of the target.  To the average golfer, the target is often the ball.  We end up concentrating on hitting the ball rather than producing a swing that will launch the ball toward the true target, that spot down the fairway or the green.

In average corporate cultures, the target is often getting to work, doing your job and going home at night.  All too often, there is little thought about what the real target is and everyday work is going to help achieve the desired results.

Great cultures help all employees understand how their work will advance the corporation toward the goal.

Do people really understand the connection between their daily goals and objectives and the long-term goals and objectives of the corporation or team?  Great cultures do.

Strategic Direction and Intent

The world changes rapidly around us.

  •  Competition changes.  We talk about this change with words like disruption.  A competitor invents something new or puts a new twist on things that disrupt the entire industry.  If a culture has good strategic direction and intent, they are constantly looking out for and watching competitors so they don’t become a victim of disruption.
  • The consumer changes.  The Consumer Packaged Goods industry has been dealing with this over the last few years.  If you look at the pre-packaged food industry, you’ve seen CEO changes, Board changes, buy-outs, and consolidation.  Everyone is looking for a way to combat the disruption.  Many times it happens because these companies have had tremendous success for decades and it’s hard for them to think that the strategy that got them here won’t get them through this next threat.  You can’t think that way anymore.  Consumers are changing too fast.
  • The industry changes.  I could go down many paths on this issue but I’ll choose one, government regulation!  When regulations change it can affect an entire industry almost overnight.  Great cultures are prepared.
Scenario Planning

One approach that I’ve seen work well to combat all of these shortcomings is scenario planning.  Pick a few “worst-case scenarios.”  Even if no one on the team thinks this could possibly happen, make a list of the worst possible events the team can think of.  Then do some scenario planning.  Spend some time talking about “what if” parts of or even the whole scenario were to happen, what would we do?

Teams that have gone through these scenario planning sessions are more apt to see changes sooner and less likely to make panic moves to counter the change once it’s obvious.  They feel like they’ve already faced this issue and know in general what they need to do to counter or mitigate the negative impact.  And they did it during calm times, not times of panic.

Companies that constantly keep these three things in mind create Great Cultures:

  • Vision:  Does everyone in the company know what the desired future looks like?
  • Goals and Objectives:  Does everyone know how their daily work impacts that long-term vision?
  • Strategic Direction and Intent:  Does everyone know that the future is filled with challenges but we’ve tried to think through many scenarios?  Are they able to raise the alarm if they see things happening that could trigger one of the disruption scenarios?

You’ll note that I started each one of those segments with “Does everyone….”  That’s the point of building a great culture.  It’s transparent.  It’s well known.  People can speak up from everywhere if they see disruption coming.

One of the best CEO’s I’ve seen would spend time walking and talking with people throughout the company.  He often said that he got the best early warning signals came from the truck drivers and people who worked in shipping.  They seemed to be intuned with “the street” and if he would ask, they gave him early signals of things changing.

Culture means everybody, not just the leadership team and their direct reports.  Is the whole organization aware of the Mission?

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BlogCultureCulture Series

Culture: Introduction

by Ron Potter July 18, 2019

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 siloed 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.

Siloed 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 or enhance any of the identified strengths.  Building better teams and leadership improves those issues.

So what should be looked at when we think about and measure culture?

Culture Model

I first met Dan Denison many years ago when he was completing his research on corporate culture at the University of Michigan.  One of the things that caught my attention right from the start was Dan’s purpose in finding those items that can be measured on a survey that actually impact the bottom-line performance of an organization.  I knew that would catch the interest of every senior corporate leader I was working with.  They are very bottom-line focused.  If Dan could demonstrate that certain parts of the environment or culture actually had an effect on financial performance, I knew we had a winner.

From that initial work, Dan has gone on to be Professor of Management and Organization at IMD – International Institute of Management Development in Switzerland as well as found and become CEO of Denison Consulting in Ann Arbor, MI.  I would encourage you to visit his website at www.denisonconsulting.com.

The Denison model identifies four quadrants with three subsets each.  In this blog, I’ll introduce the four quadrants and then go on to explore each one in more detail over the next few months.

Four Quadrants of Corporate Cultures

Mission – Adaptability – Involvement – Consistency

Much of the wording you’ll see to describe each of these quadrants come directly from the Denison materials.  I trust Dan will see that as flattery and not plagiarism.

Mission

“Do we know where we are going?”

High performing organizations have a mission that tells employees why they are doing the work they do, and how the work they do each day contributes to the why.

Adaptability

“Are we listening to the marketplace?”

High performing organizations have the ability to perceive and respond to the environment, customers, and restructure and re-institutionalize behaviors and processes that allow them to adapt.

Involvement

“Are our people aligned and engaged?”

Highly involved organizations create a sense of ownership and responsibility.  Out of this sense of ownership grows a greater commitment to the organization and an increased capacity for autonomy.

Consistency

“Does our system create leverage?”

Consistency provides a central source of integration, coordination, and control, and helps organizations develop a set of systems that create an internal system of governance based on consensual support.

Schedule

Over the next several weeks I’ll break down each one of these four quadrants into their three subsets and share many experiences I’ve had through the years of companies that have improved over time.  Some of them have changed rapidly, others slowly but steadily and unfortunately some not at all.  But there always seemed to be reasons for the growth and development or lack thereof.  One thing that has been very clear, the growth and development that did or did not occur was caused by internal issues, not external environments.

Just as a reminder, these blogs will be our Thursday morning series.  Our Monday morning blogs will be less structured and disciplined and made up of issues and ideas that are striking me at the moment.

Thanks for coming along on this journey with me.  I’ve appreciated your loyalty and comments.  And don’t forget to share this connection with someone you know.  It will be more fun when we increase the size of our community.

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