Creating A High Performance Culture - Breathe In AND Out

A recent survey revealed on the Management Issues website revealed that 9
out of 10 executives believe that corporate culture is as important as strategy
for business success. The report by consultants Bain and Company surprised
me because that seems so obvious, why would it be a headline? (it also
implies that 10% of executives thought it wasn't as important which is even
more surprising!). Surely this is like saying 9 out of 10 executives believe that
breathing out is as important as breathing in! The two are inextricably linked,
and to be honest, each on their own has limited use without the other (to put it
mildly!).

The report goes on to say that fewer than 10% of companies currently
succeed at building high performance cultures - now that doesn't surprise me!
One of the main reasons is that they are not sure how to! Culture is often seen
as 'soft' or 'touchy feely', whereas in reality it's actually the hardest part of
management. Why? Because it deals with attitudes and behaviours which all
somehow seem a bit vague. It's much easier to talk about territories, product
life cycles, sales targets, margins and advertising budgets. They're 'real' and
'tangible'.

So how do the best businesses develop a culture that creates competitive
advantage? There are no easy answers, but here's a few pointers from the
stuff I've seen:

Pointer 1: Understand your current culture:

One delegate at a conference I spoke at, came up to me after and explained
although he found what I talked about on culture fascinating, he was troubled.
"We don't have a culture at our place," he explained. "You do," I replied. "We
don't," he assured me. I suggested that if I spent only a few minutes in his
offices, I'd get a feel for it relatively quickly. "We definitely don't have a
culture," he persisted, "no one gives a damn at our place!" "That's your
culture!" I cried.

My definition of culture is 'the way we do things around here'. It's a bit
simplistic, I know, but that's my point. Demystifying it is a key starting point.
Many businesses don't address it because it's deemed too complicated.

So, getting a clear 'objective' view of your current culture is a useful point to
start from. Why not get your people to describe it - pluses and minuses.
What about customers too? Ultimately, you'll establish a set of words and
phrases that reflect your current culture.

Which aspects are you happy with? Which are you unhappy with? Getting a
true picture helps you work out what you need to keep, eliminate and work on.
Think baby and bathwater!Pointer 2: Spell out your 'preferred culture'

In the same way that great leaders shape and communicate a 'vision' they
also spell out a picture of the culture they are striving for. This can often be
just a set of guiding principles or 'values', but the best seem to go further by
establishing 'preferred behaviours' that support these values.

This helps provide guidelines for acceptable and unacceptable behaviour -
experience shows that this also helps manage performance more effectively.
Again, getting 'ownership' of these behaviours is key. It should not just be
seen as a 'management thing'.

Remember this is about action, not words. Enron had a set of published
values, one of which was integrity! It's not what you say, it's what you do that
counts!

It's also about what you reward….


Pointer 3: Value Your Values

Ever had someone in your team who achieves all their goals and hits all their
targets, but is basically a real 'pain' because they wind others up, de-motivate
colleagues and upset team members? If you measure individuals on results
alone, regardless of their behaviours, then you're asking for trouble.

Successful companies reward the behaviours they want as well as results. A
frustrated business leader explained how she was struggling to get her people
to think creatively, be innovative and generate ideas. "What's the reward for
generating ideas in your business?" I asked. She looked puzzled. Talking to
her staff it was clear that the 'reward' for coming up with more ideas was more
work!

Effective leaders 'Champion Their Champions'. This means encouraging,
acknowledging, supporting and rewarding those that promote and act in line
with the preferred behaviours. Equally, they 'Challenge Their Challengers'.
They deal with those individuals who do not. What happens in your business
to those who don't? If the answer is nothing, then expect some people to take
the 'easy option' of not bothering.

If you're really serious about this stuff, then you need to build it into your
reward systems, feedback systems, appraisal processes, promotion criteria,
recruitment and selection processes (do you currently look for evidence of
preferred behaviours in prospective employees?). Be a role model, make it
visible and talk about it at every opportunity. Put it on the agenda at team
meetings, board meetings and corporate communications.

Whatever you do, please, please don't just put stylish 'arty' posters of people
rowing together 'as a team' on the wall in your reception and hope for the best
that you promote 'teamwork'. You need to live and breathe it (in and out!).So, how can you get started in addressing the issue of culture in your
organisation? Why not start with these questions to get the ball rolling?

" Which aspects of our current culture are we happy / unhappy with?
" Do we even know what it is?
" What preferred behaviours do we need to create the culture we want?
" What behaviours actually get rewarded round here?
" Which unacceptable behaviours are actually tolerated here?
" How do our company processes promote / hinder our preferred
behaviours?
" How do our leaders measure up against each of our preferred behaviours?

Use the answers to identify your next steps.

Developing a culture that creates competitive advantage isn't as important as
strategy for business success, It is a strategy for business success! You can't
have one without the other, and it's crucial you work on both.

So remember, breathe in…. and out, in ….and out.


Andy Hanselman is a recognised expert in business competitiveness. He
regularly speaks, writes and consults on competitiveness issues to enable
leaders to revolutionise their business performance. For more information visit
www.andyhanselman.com