How Does Culture Improve Performance?

Fuzzy Bunny

Fuzzy BunnyA company wanted to develop a new culture. There wasn’t really anything wrong with the company. But, there also wasn’t anything that felt really right. The company just…was. Like most conversations around culture, there was a champion for the cause and a lot of skeptics.

Culture is an abstract feeling topic. Kind of on the fuzzy bunny side of the “getting stuff done” end of the spectrum. This was a practical company. Not big on fuzzy bunnies.

These Bunnies are Powerhouses

We spent time discussing their values and vision for the company. Culture is very much about a shared sense of values and vision. But culture is also about more.

Values and vision have to be translated into shared types of decisions and behaviors. So, we pushed the conversation down into what kinds of policies or procedures best reflect or help manifest their values and vision. We discussed how employees would be trained and coached. The conversation even expanded to how physical space was used. How that would better support the desired culture.

Over the next few months, excitement and morale grew among the management team. They could feel the difference in terms of how their teams operated, how services were provided, and how people related. But the company was still scoring low in customer satisfaction evaluations. This was confusing – because they knew they were providing a better service to their customers.

As we looked at it, we realized that hiring practices hadn’t changed along with everything else. Specifically, as it related to hiring and training their sales force. So, while the company had made tremendous changes, the customer-facing side was still doing things the old way. Once this was discovered, they reviewed their hiring and onboarding processes. They changed their sales and approach to customer service to bring them into alignment with their desired culture.

Customer satisfaction scores rose. The company now operates more efficiently, with lower overhead, is easier to manage, and is producing better results. Both for customers and on their bottom line. By changing their culture – they changed everything.

What is Culture?

Culture is what occurs whenever a group of people adopts a common way of seeing and relating to the world. Culture follows a progression that looks a little like this:

Shared core beliefs about life, the world, and everything else.

Those beliefs translate into core values.

Core values translate into clear priorities which are the ingredients of vision.

Values, priorities, and vision – help determine:

  • How decisions are made and what they tend to look like.
  • Behaviors that are acceptable or unacceptable.

That’s the culture equation. In a tidy little nutshell.

Every Single Organization Develops Its Own Culture.

Some develop subcultures as well. One department has this way of doing things – another department has that way. Most of the time, culture is developed accidentally. Typically, it reflects (or reacts to) the values, habits, and preferences of the most dominant leaders. Sometimes this works. Often it doesn’t. It’s never sustainable without intentionality.

Accidental cultures are very hard to maintain or transfer. Especially if there isn’t understanding or intentionality around what makes them tick. They are prone to shifting and changing with the leadership personalities that come and go.

Intentional culture comes from taking a little time discussing the abstract. Finding or creating common ground. And then translating that common ground into concrete reality.

Culture Eats Strategy for Lunch

Let’s say someone wants to get in better shape, to become a little healthier. They hire someone to develop a nutrition and fitness plan that is realistic, practical, and perfect for them. Except they don’t want to change their lifestyle at all. It’s not going to work. The same is true for culture.

Or as Mark Fields, former CEO of Ford, said, “You can have the best plan in the world, and if the culture isn’t going to let it happen, it’s going to die on the vine.”

I watch companies that develop eminently actionable and reasonable plans – only to fall victim to their own culture.

How Do You Shape or Change Your Culture?

With objectivity, intentionality, accountability, and patience. You can start by answering these questions:

What values are more important to us – and what makes them important?

If we really believe those values are important – what should our priorities be in terms of:

  • What we want to accomplish?
  • How we lead?
  • How we relate to each other?
  • How we relate to our customers and business partners?

What kind of structure (if any) would help us be consistent in those areas?

Is there any structure that we currently have that makes consistency difficult?

Take good care,

Christian


Further Reading:

The Leader’s Guide To Culture Change


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