Focus on Culture

Focus on culture is critical for proper alignment of executive and organization. Culture is a tricky thing because the culture of an organization is rarely perceived the same at the rank and file level as it is in the executive suite.

What would your front line employees say about what is most valued most at your company? Is it service, innovation, product design, execution, operations or price?

What drives your business? Do consumers, businesses, government entities, subsidies or contributors drive your company? It is amazing to me how many CEOs don't really understand what drives their companies.

What internal forces drive your company? Often overlooked, no company is ever perfectly balanced in terms of the influence and power wielded by the departments. Some companies are predominately driven by operations, some by marketing, some by finance, some by product development and the list goes on. It is not uncommon to see dissatisfaction on the part of a newly placed executive when he or she discovers that the department, division or business unit doesn't enjoy the same organizational clout expected.

What behavior(s) would your middle managers say is rewarded at you company? Now this is huge because the behavior that is revered in one company will get you fired in another. In some organizations, extremely competitive, bordering on predatory behavior, is rewarded and encouraged. This kind of behavior may or may not be acceptable in your organization. While we never find these kinds of subtleties discussed on company websites, brochures, annual reports or in employee manuals, they are absolutely a reality and you need to come to grips with this issue in your organization. This is not about right or wrong, rather understanding reality and recognizing that a very fine executive who has flourished as a chief operating officer in one company may fail in another seemingly identical company, while holding a seemingly identical position.

What would your average two year employee say makes your company a good company to work for?  These questions can lead to meaningful dialogue around culture and what types of individuals tend to do well in a particular environment. It will also be critically important that culture at executive level be addressed.

Develop a clear description of how the organization works, what kinds of behavior, contribution and interaction are valued, and how the organization tends to judge new hires. Is the organization accepting of newcomers? Are you receptive to new ideas, or are you steeped in the past?

There is no such thing as knowing too much about the culture of the organization in which you are about to place a new executive. Do not make the mistake we've seen many times: placing a well qualified executive who looks absolutely perfect on paper into an organization with cultural norms and values incompatible with those of the candidate. Remember a mature leopard is incapable of changing his spots! Also, don't assume that just because the placement occurs as a result of an internal promotion that the culture nuances are any less important. Each level within an organization has its own sub culture complete with its own set of land mines that have to be navigated.

Most organizations have what I call an execution style. Some have referred to it as the speed of the company. Some companies are very fast and some are painstakingly slow. Much of this is driven by the nature of the board of directors and the ownership structure. Some new CEOs are frustrated at the speed (or lack thereof) at which the board will allow them to make significant changes in the organization.

Don't forget about work ethic. Once again, no right or wrong here, let's just flush out the real picture. It would be an enormous mistake to bring a new executive, including a CEO, where work ethic compatibility wasn't explored.

EXAMPLE

In 2008, I met a very talented female executive who had moved her family to the U.S. from The Netherlands to assume the role of CFO in a $90 million power generation company. She lasted less than six months. This was a classic mismatch. Upon close examination, there was absolutely nothing wrong with the company, job, or candidate, just a huge mismatch. The CEO in this organization was a hard charging start-up CEO who worked eighty hours per week and required the same of his lieutenants. For many this would not have been a problem because there was a big pot of gold at the end of this start-up rainbow. After the fact, when the placement had fallen apart, the search consultant in charge of the search admitted that she knew there was a potential problem with her candidate. The candidate had made it clear that she placed work-life balance near the top of her list. The consultant was under such enormous pressure to complete the search that she chose to ignore a reality that had predestined the placement for failure. 

EXAMPLE (Survey)

The following survey questions explore culture in your organization. In particular, the questionnaire explores two critical questions: How strong is your culture? To what extent does your culture support organizational agility? The underlying assumption - supported by research - is that in a fluid and rapidly-changing business environment both clarity and flexibility are demanded. Go through each of the questions and answer not with the way you want your organization to be, but as it is now. Ask respondents to answer on a scale of 1 - 10, with 10 meaning "Absolutely Yes".

Answer every question. Your response will, ideally, embrace the whole organization. If you are new to the organization, or part of a very large enterprise where you only get to see part of what happens, base your answers on the part of the organization you know well.

  1. The organization's mission/purpose is absolutely clear
  2. The organization's mission/purpose makes me feel that my job is important, and I'm proud to be part of this organization
  3. We move faster than the competition when launching new products and service
  4. As an organization we are quick to identify even subdue changes in the way the market place is unfolding
  5. As a business we have an outstanding track record of anticipating and successfully responding to initiatives generated by the competition
  6. Speed and simplicity are alive and well in everything we do
  7. As a business I know we are measuring the right things
  8. We excel at measuring effectiveness through the eyes of the customer, across the organization
  9. I fully understand my role, what is expected of me today, and how and where I need to grow to succeed tomorrow
  10. Honest and regular feedback is a way of life. That feedback draws on the specific competencies (Behaviors) that describe success in my role
  11. We are passionate in the way we live our organization's values. Our values shape our priorities and dominate decisions at every level of the organization
  12. People around here feel that their concerns are both listened to and, whenever  possible, addressed
  13. Those who deliver results, but don't consistently live our values are confronted and, if necessary, separated from the organization regardless of level
  14. People around here understand with great clarity the priorities that underscore their role
  15. People around here who do not meet the agreed goals/results are held accountable regardless of level
  16. The top team excels in building commitment to the vision
  17. As a business we consistently learn from our mistakes
  18. My team leader is both committed to, and skilled in, the way he/she supports my personal growth and development
  19. The standards against which quality is judged (service, products, and processes) are absolutely clear across the business
  20. Exploring new processes and innovative tools to better understand the customer's emerging needs is an ingrained discipline in this organization
  21. Consistency challenging the established way of doing things is central to our culture
  22. In the past three Mondays, I have had at least one meaningful discussion about my career
  23. Positive reinforcement for good work is an ingrained habit around here
  24. It would be fair to say that people around here have considerable freedom to act
  25. Courageous conversation (candor) is a way of life. When we get together we regularly discuss "the un-discussable"
  26. The organization's structure is designed to meet the need to "act fast." As a result stripping away unnecessary rules and bureaucracy is an ongoing process
  27. Pushing the boundaries, taking risks, letting go of the past and being willing to explore uncharted territory is a natural part of the way the organization functions
  28. We hear about it before it's in the press
  29. Celebrating success is woven into the fabric of the business
  30. You can't get ahead around here unless you live and breathe "collaboration"
  31. Everyone at the top gives a clear and consistent message about where we are heading and why
  32. When a leader joins the organization, the tools and processes are in place to ensure he/she hits the ground running
  33. Employees at every level "live" our brand (i.e., the promise implicit in the way we present our products/service to the marketplace)
  34. We constantly seek better ways to bring the customers voice to internal meetings and critical decisions
  35. Employees at every level buy in to, and are committed to, the organization's journey
  36. Employees at every level understand why, where, and the speed at which we have to bring about change

A word of caution: I think surveys are a wonderful tool as a part of a comprehensive culture management strategy. Do not even consider conducting a survey of any of your organization unless you are fully committed to a series of appropriate responses to the survey results. Conducting a survey will stir the pot. Don't stir it unless you're willing to adjust the ingredients.