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BlogLeadership

Optimism Leads to Success

by Ron Potter March 5, 2020

A recent quote about Warren Buffet said:

Your success didn’t lead to optimism, your optimism lead to your success.”

Optimism

Wikipedia defines optimism as “A mental attitude reflecting a belief or hope that the outcomes of some specific endeavor will be positive, favorable, and desirable.”

Notice that it says a mental attitude.  In simple terms, pilots are interested in altitude and attitude.  Altitude refers to how high you are.  How much you have achieved.  Some measure of success (money, position, title).

Attitude is a reference to the natural horizon.  Are you pointed up, down, left-leaning or right-leaning?

Success to Optimism

If your optimism depends on success, you’ll soon realize that success is fickle.  One change regardless of the cause can change your success overnight.

  • Markets change – talk to Polaroid or VHS producers.
  • Appetites change – ask package food companies
  • Fashion changes – ask Henry Ford about auto colors.  He is reported to have said, “They can have any color they want as long as it’s black.”
  • Disruption– ask companies about competitors coming out with new products that eat into margins of successful products

The point here is that “success” can change very rapidly and have nothing to do with your actions.  If your optimism depends on success, it will change as rapidly.

Optimism to Success

On the other hand, if you tend to be an optimistic person, that seems to withstand external success and failure.  I’ve had three different successful careers.  Upon graduation from engineering school, I had a “successful” career working with wonderful teams building large projects.  Some of them approaching a billion dollars in their construction budget.

Then one day I was introduced to my first pc.  This was before Microsoft,  IBM, and Apple.  And yet I felt that this little box was about to change our lives.  I spent the next ten years with a “successful” career in the software development business.

Then I took on the career that I felt I had been headed for all my life.  I became an external coach focused on Teams, Leadership and Culture.  I spent nearly thirty wonderful years in that career.

You were just lucky

Along the way, many people would tell me that I was just lucky.  I guess they just chose to ignore those times when I went broke pursuing those careers.  They seem to ignore the hard work and difficulties that I overcame to achieve my “success.”  But there were those few that understood the hard work and heartaches that I was going through during those tough times.  One colleague whom I had not seen in person for many years asked me how I was doing.  When I answered with a simple “OK”, his reaction was that I must be really down.  He explained that I had always been one of the most optimistic persons he had ever known so if I was simply doing “OK” I must really be down.

Your success didn’t lead to optimism, your optimism lead to your success

Times were indeed difficult.  But I was always optimistic.  It may just be me but I’ve noticed through the years that I don’t even care to be around people who are pessimistic.  They’re just downers in my mind.  Times were always difficult in one way or another.  But being optimistic vs pessimistic is a choice.  Chose Optimistic.  It makes life much easier along the way.

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BlogCulture

Consequences

by Ron Potter March 2, 2020

Great Teams and Great Cultures require Consequences

I was talking with a colleague this week about lasting cultures.  He mentioned that the Mayo brothers died over 80 years ago but the culture they built is still in place.  Meanwhile, we’ve been associated with several companies where the culture deteriorated quickly.

One of the reasons for a lasting culture is clear and immediate consequences when team rules and cultural norms are violated.  And it doesn’t matter who violates the rule.

Immediate Consequences

I graduated from Michigan and was a fan of the Fab Five.  When Michigan hired Juwan Howard as the new basketball coach last year, I was thrilled.  Juwan also seemed to be thrilled to tears that he was “coming home” to Michigan.

But, it wasn’t long before his first test as a new college coach would come front and center.

Star player violates the team code

The Big Ten schedule was not yet a month old in his first year as a coach when something happened.  Michigan’s star point guard violated team rules.  After a hot start to the season, Michigan was now struggling and needed all of the players more than ever.

Coach Howard didn’t hesitate, he suspended the Star Player.

  • No delay
  • No leniency
  • No privileges

Coach Howard said the player had been suspended for “violation of team policies.  We have team rules and unfortunately he broke one of them.”

It didn’t make any difference that the team desperately needed it’s starting point guard right now.  He broke team rules and he was suspended!

Team and Corporate Rules

Do you have team rules?  Is everyone aware of those rules?

More importantly, does everyone know the consequences of violating those rules?  Will anyone and everyone be punished according to those consequences regardless of who they are, what position they hold, or how “indispensable” they are?

Are there consequences to breaking the rules, team or culture?

Without the consequence of rule violation, no team or culture will sustain itself.

Know what the rules are! Know what the consequences are!

Rules must be clear.  Teams and cultures must be committed to those rules. Without them, teams and cultures will never last!

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BlogCultureLeadershipTeam

Team Leadership Culture

by Ron Potter February 13, 2020

Over this last year, we’ve spent time and detail defining the Team and Culture sections of Team, Leadership, and Culture.

Our Monday blogs have spent a great deal of time over the last couple of years looking at the Leadership elements from my book Trust Me.  Let’s wrap up this section with a summary of the three elements.

 

Team First (Sort of)

As I’ve said in the past, I believe Teams should be worked on first followed by Leadership than Culture.

However, the overlap between Team and Leadership makes it very difficult to do them in order.

You’ll notice from the matrix above that there is a great deal of overlap between the Team and Leadership columns.  It seems as if you can’t accomplish one without the other.  I believe this is true!

The first element of the Team list includes “Truth”.  However, you won’t have the reputation of a “truthful” person if there is no humility, compassion or integrity.

Respect requires humility, development, and commitment from the Leadership list.  Neither one of these overlapping issues is restricted to the three that I mentioned for each one.  There are elements in all eight of the Leadership outline that are required in one or more of the Team outline.  Essentially, you can’t have one without the other.

Next Steps

Start by focusing on each of the first two outlines, Team and Leadership.

With the Leadership list, become much more self-aware and get some straight feedback from a trusted advisor, coach, or partner.

For the Team list, it will require the entire team to be made aware of the four elements and do some honest grading in each of the categories.  In our next blog, I’m going to introduce you to an app called GPS4Teams that will help you accomplish this goal.

Culture

The Culture section follows work on Team and Leadership.  Until you’ve improved to a very high level on the Team and Leadership aspects, any efforts at improving Culture tends to fall on deaf ears.

A friend and I were discussing why some cultures last (the Mayo brothers died decades ago but the culture at the Mayo Clinic seems to continue).  In identifying those companies where the culture doesn’t last, we always came back to elements of Team and Leadership that either changed or were lacking over the years.  You can’t build a great culture without first building great teams and leaders.

Emotional Quotient

Many people feel a high IQ is sufficient for solving problems.  The interesting thing is that there has never been any correlation found between high IQ and success.

What has been well documented is the correlation between high EQ and success.

Emotional Quotient can be divided into two components, Personal Competence and Social Competence.  You’ll see the Personal Competence of self-awareness, self-regulation and self-motivation relating to Leadership.  The Social Competence of social awareness and social skills relate to building Team.

Team and Leadership = Success

This correlation tells us that success requires great teams, great leadership leading to great culture.

Get started on your success today.  There’s nothing mysterious about the process.

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BlogCultureCulture Series

Culture – Other Financial Research

by Ron Potter February 6, 2020

Through the years the Denison Organization has continued to perform research on the original model.  One piece of research that caught my eye early in the process looked at six normal measures of performance that most companies look at on a regular basis.  Those six measures included:

  • Profitability
  • Sales/Revenue Growth
  • Market Share
  • Product Development – Innovation
  • Quality of Product or Service
  • Employee Satisfaction

Most Culture Surveys focus on the last of the six measures, Employee Satisfaction.  Research originally done by the Gallup organization indicated that satisfied or engaged employees lead to better organizations.  I’ve looked at several of those surveys as my customers have used them.  I agree that more satisfied/engaged employees do lead to better organizations.  But, it was always difficult for me to figure out what actions lead to more satisfied employees.  The Denison Survey always provided me with more direct and measurable actions that would lead to employee satisfaction.

Four Quadrants

First, let’s remind ourselves what is included in each of the four quadrants.

Mission
  • Vision
  • Goals and Objectives
  • Strategic Direction and Intent
Adaptability
  • Organizational Learning
  • Customer Focus
  • Creating Change
Involvement
  • Empowerment
  • Team Orientation
  • Capability Development
Consistency
  • Core Values
  • Agreement
  • Coordination & Integration

Now, let’s take a look at each of the six measures of success and look at the Quadrants that drive them.

Profitability

  • Mission
  • Involvement

The description of this one given by the Denison organization is “Do we know where we are going?”  If it’s not clear where we’re going, it’s hard to figure out where profits will come from.

The description given to Involvement says “Are our people aligned and engaged?”  Know where you’re headed and engage the people in getting there.  Strength in these two quadrants will lead to profitability.  Notice that profitability requires elements of each of the “four” halves of the chart.  Mission is in the upper right quadrant.  Involvement resides in the lower left quadrant.  Top/Bottom, Left/Right.  Profitability requires a bit of it all.

Sales/Revenue Growth

The two quadrants driving this success factor include:

  • Mission
  • Adaptability

The description given to Adaptability is “Are we listening to the marketplace?”  This means that our Mission is being tweaked along the way to meet the needs of the marketplace.  If we’re listening.

Also notice that both of these quadrants are at the top of the chart.  This is the half that creates an Externally Focused organization.  This type of organization is very focused on the forces in the market place.

Market Share

  • Mission
  • Adaptability

These happen to be the same two as Sales/Revenue Growth.  In hind-site that might be abundantly clear.  But what has been interesting to me (and makes this connection even more powerful) is that even when the industry is trending downward at the moment, companies with strength in these two quadrants tend to perform better than others facing the same difficulties.

Product Development and Innovation

  • Adaptability
  • Involvement

Once you’re familiar with the layout of the survey, this one also becomes abundantly clear.  Both quadrants are on the left side of the chart which creates very flexible organizations.

Quality of Product or Service

  • Mission
  • Involvement
  • Consistency

This is the first of the performance measures that has strength in three areas rather than just two.  It adds Consistency.  People need to know what the Core Values are and the consequences for violating them.  They also require Agreement from everyone plus Coordination and Integration across the organization.  There can be no disagreement on how we do things around here and no piece of the business making decisions that benefit themselves and not the whole company.

Notice it does not include customer focus.  Quality is internally driven, not externally driven.

Employee Satisfaction

  • Mission
  • Involvement
  • Consistency

This is usually the one that is measured by Culture Surveys.  What’s interesting to me is that this one is driven by exactly the same quadrants that drive Quality.   A clear mission, active involvement and consistency drive quality, and satisfaction!

Where do We Start?

One of my colleagues calls this the “So what, Now What?” question.  Now that I know this information, where do I start or what do I do with it?

One way to answer that question is to see how many of the performance maesures are driven by each quadrants.

Mission is involved in five of the six performance measures:
  • Profitability
  • Growth
  • Market Share
  • Quality
  • Employee Satisfaction
Involvement is involved in four of the measures:
  • Profitability
  • Development/Innovation
  • Quality
  • Employee Satisfaction
Adaptability is involved in three:
  • Growth
  • Market Share
  • Development/Innovation
Consistency is involved in two:
  • Quality
  • Employee Satisfaction

I always suggested that you start with Mission, get everyone Involved, increase your Adaptability and change and finally make sure that you’re absolutely consistent in your approach.

Build a Great Culture

Great cultures are absolutely required to build great companies.  Just don’t forget the other two elements of being great:

TLC

Team Leadership and Culture.

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BlogCultureCulture Series

Culture – The Other Two of the Four Halves

by Ron Potter January 30, 2020

In the last post, I discussed balancing the right side vs the left side of the Culture Survey, Stability vs Flexibility.  This week we’ll look at the top vs the bottom, External Focus vs Internal Focus.  You can see from the chart that the top half (External Focus) is driven by the Vision and Adaptability quadrants.

External Focus

Again, for very natural reasons, I often see more focus on the external than I do the internal.  For one, it’s easier to speak with external suppliers, press, buyers than it is to face the internal issues of making sure everyone is involved and engaged, living by accepted core values and reaching agreement and alignment across an organization run by many “type A” leaders.

One of my interesting observations through the years has been to see the CEO and COO work together as a team.  One of them often functions as “Mr. Inside” while the other one functions in the role of “Miss Outside.”  Don’t make the mistake of assuming the CEO functions outside while the COO functions inside.  The best transitions I’ve observed during a CEO retirement is when the COO takes over but still functions as the inside force.  The new COO is good at the outside connection.  This creates the smoothest transfer and keeps the company headed toward the future they’ve been preparing for.  Failure seems to happen when the board assumes that because the retiring CEO was a great visionary, they must hire a new CEO that’s also a visionary.  However, the new vision is often very different from the existing vision and the company has not prepared itself to move forward at the necessary speed.  A rotation that keeps the current vision in place and moving along at the right speed seems to work the best.

Internal Focus

Too often there is not enough effort to keep the people involved and consistency maintained to keep the company moving in the right direction at the necessary speed.  Never stop empowering the people, building teams and developing the strength and skills necessary to move into the future.  Involvement is critical to future success.

Consistency is tough to build but easy to lose.  If you:

  • Allow Core Values to be violated without consequences,
  • Don’t require a commitment to decisions that impact the entire company or
  • Allow departments and divisions to make decisions that help them but ignore the other teams

you’ll quickly lose consistency and the required, strength, resiliency and unity that is needed to create a great company in difficult times.

Balance, Balance, Balance

Great cultures required balance.  At any point in time, your company may require special strength and commitment to a particular part of the Culture Chart in order to deal with special market situations.  But even in that case, don’t let your chart get too far out of balance.  Balance, Balance, Balance.  It’s a requirement.

3rd Quartile

Regardless of the situation, you must have good culture scores in every element of the chart.  I would suggest that if you score in a range below the 50th percentile in any element, you work there first to correct the situation before moving on to the culture as a whole.  There may be particular strengths required for different market conditions (see next week’s blog about particular market conditions) but I believe that every element of the twelve should be in the 3rd quartile first before moving on to work on a particular situation.

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BlogCultureCulture Series

Culture – Four Halves

by Ron Potter January 27, 2020

Yes, I have an engineering background and I know there are two halves to every whole.  However, the best way to start looking at the results of your culture survey is to look at each half: left vs right, top vs bottom.

Photo credit: Denison Consulting

Stable and Flexible Organizations

The right side of the chart: Mission and Consistency, creates very stable organizations.

The left side of the chart: Adaptability and Involvement, creates very flexible organizations

The trick is to exhibit the right amount of each half depending on your situation.  I’ve seen a couple of companies do this the wrong way.  Both are companies that are over 100 years old and during that time have been the largest company in their industry.

Too Stable

One of the companies took an approach that was way too stable for their changing environment.  As they lost market share and profitability over several years their approach was to “do things the way we’ve done them for over 100 years.  That approach has weathered downturns in the past and will do so again.”  Unfortunately, it didn’t weather the downturn and they became a small provider in the industry as other companies took the innovative lead.

Another company that was also over 100 years old knew they were falling behind the competition.  They hired a “visionary” CEO from a very different industry to help them innovate their way back to a leadership position.  This leader lept to a vision of the future that was so far beyond their current position that most people complained they didn’t even know what he was talking about.  Consequently, they continued with a “business as usual” approach because they had not been prepared to function differently then they had for many years.

Just like many sports teams, companies often go into a prevent defense posture once they’ve gained the lead.  There is great fear in the organization of losing the gains that have been made so they try to protect their current position.

Teaching a Fifth Grader

Because most leaders don’t want to be labeled as the ones who lost the gains that have been made over several years, I see more of this issue rather than the case of trying to leap-frog forward to an entirely new position.  Becoming an innovator is tough to pull off if your company has not been prepared to let go of old habits and products in favor of a new, innovative approach.

This issue was made very relevant to me when my children were in about the fifth grade.  If one or both of them (they were two grades apart) were having difficulty with a particular subject in school they would turn to me for some help.  However, as I began to explain the issue from my level of understanding or education, their eyes would glaze over and they would finally toss their homework on the table and tell me that I was no better than anyone else at explaining the issue from their level of understanding.  I then asked to see their textbook and read one or two chapters ahead.  Once I remembered the concept that needed to be learned next, they usually responded with something like “Why didn’t you say that in the first place?  It all makes sense to me now.”  With that approach, I was astounded at how quickly they learned and advanced through the topic, often faster than their schedule dictated.

If you want your organization to advance quickly to the next level of understanding so that they can compete at an innovative level, show them the path.  Help them see one or two steps forward.  You’ll find that they will get quicker with each step along the way until you (and they) realized that they’ve turned into an innovative organization.

Need for Change and Innovation

Don’t let go of the stable side of the culture survey.  No organization can get out of balance and remain successful.  While I often see companies maintain the stable side of the survey, it must be balanced with the flexible side in order to obtain long term success.  Both sides must be expanded in order to be successful.

Difficult to accomplish?  Yes, but necessary.  While some people think that leadership is easy, it never is.  Balancing stability and flexibility is difficult.  But that’s what it takes to be a leader.  Accomplish the impossible during the day then go home and be an ordinary family member at night.  It’s worth it but it’s not easy.

Internal vs External

In our next blog post, we’ll take a look at the other two “halves” that are just as difficult.  Then we’ll take one last look at culture in general and how it impacts the bottom line.  Stay tuned for next week.

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BlogCultureCulture Series

Culture – Consistency: Summary

by Ron Potter January 9, 2020

Consistency

Image result for Image of give me a lever long enough

The last quadrant of the Denison Culture survey is Consistency, “Does your system create leverage?”

We first introduced the mechanical image of leverage when we introduced the “fulcrum” of Consistency.  Most people have seen or heard the quote from Archimedes when he said: “Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.”  As a side note, he also said “Eureka!” which meant “I’ve got it” or “I’ve found it.”  Leverage is what he found.

In the post about Coordination and Integration we talked about the lever and how that looks different in each part of the organization.

Together these two create “Leverage!”

The three sections of the Consistency Quadrant talk about achieving leverage.

  • Core Values
  • Agreement
  • Coordination & Integration

Consistency is about Results

Dan Denison and his team at Denison Consulting may disagree with me, but in my mind, this quadrant is about results.

My belief is that if you’ve worked hard at each of the other three quadrants of Mission, Adaptability and Involvement, the results are great Consistency.

Take a look at some of the words within the individual questions related to each of the three segments:

  • practice what they preach
  • a distinct set of practices
  • a clear and consistent set of values
  • accountability
  • win-win solutions
  • we reach agreement, even on difficult issues
  • clear agreement about the right way
  • share common perspectives
  • coordinate across the organization
  • good alignment

These issues are results.  The organization has and develops leverage.  It creates a highly productive culture.

  • Should you set and live by a clear set of core values?  Yes.
  • Should you work hard at reaching agreement across the organization?  Yes.
  • Should you coordinate and integrate across and between divisions of the organization?  Yes.

But, if you try to accomplish these things without first establishing Mission, Adaptability and Involvement, they won’t amount to much.  There is no foundational work.  The structure will crumble without the needed foundation.

What is Culture?

We introduced the Culture Series many months ago with this start:

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

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.

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.

Why Build a Great Culture?

I’ll go back to the name of my company, Team Leadership Culture (TLC).  These are not distinct issues that you face and corrected one at a time.  Great companies and great leaders are always working on all of these issues.

One of the biggest mistakes that I see leaders make is to assume they’re high-level managers.  One of the more difficult transitions is to shift from being a great manager to a great leader.

Great Managers
  • Work in relatively stable environments
  • Have long-term views and line-of-sight
  • Usually have clearly defined direction and strategy
  • And because of these issues, have a limited need to re-direct themselves or those who work for them.
Great Leaders
  • Spend the bulk of their time on vision
  • Develop and lead teams that manage more of the detail
  • Constantly scan the environment both internally and externally to spot the need for change early
  • Tend to be more risk-takers and have a higher tolerance for risk.

Great leaders and leadership teams create great cultures.  Cultures outlast leaders and teams.  This applies to both good and bad cultures.  Make sure you and your team are focused on a great culture.  It’s the only thing that lasts.

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BlogCultureCulture Series

Culture – Consistency: Coordination and Integration

by Ron Potter January 2, 2020

This final section on Consistency, Coordination and Integration, clearly speaks to agreement across the company.

Survey Items

You’ll quickly see in the individual questions the focus on cross-company alignment

  • different parts of the organization share common perspectives
  • easy to coordinate projects across the organization
  • people in other parts of the organization share the same goals

In our first blog post about this quadrant, we spoke of levers and fulcrums.  This is the lever.  Different parts of the organization share the same goals but require different resources and move at different rates.

Levels

There is also a question in this section about alignment across levels of the organization.  Sometimes it’s a lack of understanding or different understanding at different levels of the organization rather than across the organization.

Sometimes when I would be working in one part of the organization I could see that they understood this principle.  They would invite people from other departments to be a part of their team just to make sure they were completely coordinated and integrated.

But, when I was working up the organization a level or two, they were often oblivious to the efforts being made below them.

Horizontal and Vertical

Coordination and Integration must work both ways to be effective.  Across the organization in a horizontal effort as well as up and down the organization vertically to be effective.  It must be complete coordination and integration.

Frictionless

In mechanical systems such as your car or other pieces of machinery, a great deal of research goes into reducing friction.  Friction creates heat.  Heat is lost energy.

Being completely frictionless in either the mechanical or corporate world is impossible.  You’ll never eliminate all of the friction.  But you can reduce it as much as possible.

I grew up in the era of muscle cars.  We often talked about someone who “blueprinted” their large V-8’s in order to make them more powerful. they were reducing friction by milling the various parts to tighter and more precise tolerances.  Less friction, more power.

Corporations are artificial structures that have been created to bring a great number of people together to tackle large projects.  There will always be friction!  If there is not an efficient design, touch-points between parts of the organization are rough and ill-defined.  They’ll create friction.  When there is too much friction, people will feel that it takes too much effort to work with other parts of the organization.  Sometimes they’ll just not exert the energy it takes to work through the issues thereby focusing on their own needs rather than the needs of the company as a whole.  Other times they’ll duplicate what they need within their own boundaries thereby spending more money on duplicate resources.  For example, did you know that 65 agencies that have their own police force within the Federal Government?  Why?  It’s likely easier to create their own force rather than coordinate across department lines.  That’s a lot of heat.

Sources of Heat

If you’re getting low scores on this portion of the culture survey, look for the heat.  Heat can exhibit itself in the form of

  • tempers
  • burn out
  • long wait times for approval or response
  • just taking too long to get anything done

If your coordination and integration is in good shape, you’ve minimized the heat-causing friction.

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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 – Consistency

by Ron Potter December 5, 2019

Our final quadrant is “Consistency”.  The subtitle here is “Does the system create leverage?”

Photo credit: Denison Consulting

Without Consistency

It might be easier to think about this quadrant in the negative.  What causes the system NOT to create leverage.  Archimedes is credited with saying “Give me a lever long enough and a fulcrum on which to place it and I will move the earth.”

When you can create leverage, substantial movement can occur.  Without a lever or a fulcrum not much happens.

Where do leverage and fulcrums come from in corporate culture?

Corporate Fulcrum

A fulcrum is a solid base.  It’s substantial, heavy and solid.  You can think of a block of concrete.  Because of my civil engineering background, I know something about concrete.  One of the parallels I’ve drawn through the years between concrete and corporate cultures is what happens to them under pressure.  When you’re doing a large pour of concrete that will eventually hold up a large building, you must test it for strength under pressure.  It was always interesting to me that when concrete finally fails (it always will under enough pressure) it tends to shatter.  It doesn’t break into large chunks, it breaks into hundreds of pieces each going its own way.  Corporate teams and cultures often do the same under great pressure.  Each member heads their own way.  There is no more unity.  There is no more functioning as a single whole.  Everyone scatters.

Under pressure, concrete and cultures can lose their integrity.  There is no more possibility for leverage.

Corporate Leverage

Beyond losing the integrity of the fulcrum, leverage requires a long lever.  But, if you’ll notice, different sections of the lever move at different rates.  While the end of the lever may be moving great distances at a higher pace, sections close to the fulcrum may not be moving fast enough or far enough to even notice.  Different sections of the lever must be willing to play their role to reach the maximum leverage.

So, to answer the question, does the system create leverage we have to ask about the solid foundation (fulcrum) and the willingness and ability to support different parts of the organization moving at different rates over different distances.

Three Sections of Consistency

To get at these issues, the Denison Culture survey asks questions in three different areas:

  • Core Values:  This is the solid foundation portion.  It requires great values and a desire to protect and propagate them.
  • Agreement: This is the integrity part.  Without agreement (and I would add commitment) there is no integrity in the organization.  Without Integrity, there is no leverage.
  • Coordination and Integration:  This is the part that allows different parts of the organization to move different distances at different rates.  Without Coordination and Integration, one part of the organization may become jealous of other parts.  And what seems like a more common occurrence to me, each part of the organization attempts to maximize their portion.  They do this with little regard for how those resources may be used for greater leverage in a part of the organization that needs to move faster.

So over the next few blog posts, let’s take a look at each of these individually

  • Core Values
  • Agreement
  • Coordination and Integration

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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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