UNLOCKING CORPORATE CULTURE

By Michael J. McCarty

The term culture is derived from the Latin word meaning “to cultivate”, and is traditionally meant to define a society’s (or individual’s) system of beliefs and behavioral norms. Societal culture is reflected in manners, attire, language, use of symbols, and rituals.

Corporate cultures, as business environments, are a microcosm of our general culture and wield frequently hidden but nevertheless powerful effects on employees. A choice of one culture over another can influence a career more than any other single factor.

Cultivating cultures – those that create superior environments for employees – contain the following elements:

  • Inspirational leadership
  • Development of the power of the individualas the company’s prime asset
  • Valuation ofempowerment
  • Preserving and growing a sustainable Core Ideology
  • Publication and training on Codes of Conduct
  • Fostering initiative and proactive problem-solving
  • Valuing and nurturingcreativity
  • Encouragement to take risks
  • Publication of an ongoing formal communications plan to inform employees
  • Structuring (and re-structuring) a responsive organization
  • Understanding and preservinglife/work balance
  • Utilizinginformation to make informed decisions
  • Managingpartnerships and alliances internally and externally to grow stronger
  • Emphasizing collaboration and teamwork
  • Using clear understandable languageto communicate unambiguously
  • Buildinga physical environment that is efficient and respectful
  • Buildinga positive psychological environment – supported with coaching and mentoring – to foster career as well as corporate success

Using our “Vitruvian” logic, imagine these elements in terms of a pyramid. The most visible element of Leadership is topmost, and the power of the Individual forms the base of the foundation. Each element builds upon the other, and the power of the organization builds from the bottom foundation.Anything less than a complete culture is an incomplete organization.

Now, let’s examine in detail how these essential cultural elements will significantly impact your career success or failure, starting from the top down on our pyramid of culture.

Leadership

Perched atop our Culture Pyramid, senior management, and in particular the CEO, of an organization should set the overall professional tone, and personify the culture. He or she manages and oversees the nurturing of the cuture which in turn nurtures the employees.

The CEO works with managers to identify employee potential, and develop that potential, while publicly celebrating successes, promotions, and accomplishments.

I fondly recall that a former CEO, as my business mentor, who taught me the inestimable value of continually thinking about individual employees and their careers within the organization. He understood their unique assets by observation and study, and had an uncanny ability to match their talents and aspirations to the right position; he also had an excellent sense of timing and intuition which he consistently applied. So considerable were his skills in this area that our organization was well-known in the marketplace for his personal brand of leadership.

The effective CEO manages change, tracks careers, understands opportunities, and makes decisions with confidence and the appropriate facts in hand.

The following checklist enumerates the key attributes that makes great CEO’s:

  • Does the CEO personify the corporate brand?
  • Is the CEO future-oriented?
  • Does the CEO have a people orientation first?
  • Understand individual potential
  • Is a continual future orientation part of the CEO’s persona?
  • Improvement of people and processes and products
  • Does the CEO have a competitive outlook?
  • Proactive vs reactive strategies?
  • Is the CEO characterized by a healthy sense of humour and self-deprecation, especially in difficult times?
  • An ability to place events in perspective?
  • Is the CEO a consensus-seeker?
  • Is the CEO a good listener as well as communicator?
  • Does the CEO use plain language (or “code”)
  • Does the CEO grant continual direct access to all employees?
  • Are there any “hidden agendas?”

Lesson Learned: Make no mistake about it, corporate culture is epitomized by the CEO. If your CEO is a tyrant, or overly blessed with himself, you’re in big trouble. Under these circumstances, more time can be spent satisfying the CEO’s needs than advancing the future of the company – or your future!

An effective CEO,on the other hand, can be an invaluable coach or mentor whose positive influence can stretch beyond your current position to influence your entire career.

Ideology

Corporate ideology is a system of values that define an organization’s purpose, and are usually summarized in a mission and/or vision statement. As the company most closely-held beliefs, they form a core of meaning that eventually becomes the company’s tradition and history.

The ideals inherent in an ideology need no justification, and have been proven over time. Supported not only by the employees, but all external shareholders, they define the company’s brand image and set the tone for ethical standards.

Can the organization succintly answer the following questions?

  • Summarize the corporate mission statement/vision statement
  • How often is this reviewed and revised?
  • Can every employee recite or summarize the mission?
  • How is the vision/mission statement used? How is it promoted?

Lesson Learned: Visionary statements are meant to set realistic by inspirational goals that give direction and purpose, and publication of these statements can be useful reminders of a company’s progress and even innovation. Be certain the lofty verbiage matches the organizational deeds. The words must reflect the ongoing core strategies and be meaningful.

Codes of Conduct

Companies that recognize a power higher than themselves in terms of ethical behavior provide a necessary moral landscape for their employees. Recognition and respect for the individual and the company’s many stakeholders should be embodied and formalized in a corporate Code Of Conduct.

An ethical policy also provides a needed forum to discuss the moral ramifications of decisions, and imbues employees with a sense of responsibilities beyond strictly monetary gain.

Some bellwether questions to ask include:

  • Does the company in fact have a formal ethics code?
  • How often is the code updated and reviewed?
  • Who has responsibility for the code?
  • How often are code training sessions conducted?
  • How are moral dilemmas as part of corporate decsion-making handled?
  • How are the ethical norms of honesty, openness, empathy, respect, and fairness implemented at the organization?
  • How does the organization promote the value of corporate and individual accountability?
  • Does the CEO embody corporate character in the form of the ethical code?

Lessons Learned: It is instructive to note if the words “ethics”, or “conduct” are consistently mentioned within the organization. Awareness of these issues and responsibility to the community at large bespeak a responsibility to the individual employee as well. Open leadership and individual empowerment lead to a certain transparency of purpose and a sense of disciplinethat is reflected in adherence to a Code of Conduct.

Regarding final question listed above, pertaining to the CEO’s leadership by “character,” a story from Doris Kearns Goodwin’s excellent book – Team of Rivals – illustrates the ethical example and character of Abraham Lincoln. The famous Russian author Leo Tolstoy was once touring a remote area high in the mountains, and found himself at a campfire with the local primitive inhabitants. They pressed Tolstoy to tell them of recent world developments, and the background of various historical figures. As Tolstoy’s stories wound to a close, the natives chided him, saying, “But you haven’t told us about the greatest of generals, the hero who ruled the world.” To Tolstoy’s surprise, they meant Abraham Lincoln. Later Tolstoy felt constrained to write that this was an example of how “Lincoln’s supremacy expressed itself in his peculiar moral power and in the global greatness of his character.”

Organizational Structure

Corporate structures vary, but should be organized in ways that promote efficient communication, unity of command, decisive execution of strategies, and opportunities/contingencies for internal growth.

Among many questions, these most relate to culture:

  • Does the organizational structure itself encourage and provide the means (commitment) for communication at all levels?
  • Are appropriate managerial imperatives – direct command and unity of command – reflected in the organization?
  • Is there a defined career “path” in each department?
  • Can this path be illustrated with promotions, etc.?
  • Is there a formal succession plan?
  • Employee evaluations
  • How often are employees evaluated?
  • How are their aspirations/ambitions/goals recorded and evaluated?
  • How many levels of management?
  • “Flat” or “Deep” organization?
  • Number of senior managers?
  • Number of new positions created?
  • Is coaching and mentoring a formal or informal process at the organization?
  • Is the organization structured so as to engineer and manage change when necessary?

Lesson Learned: Poor structure in an organization leaves you with no defined career path, cognitive dissonance in reporting, and too many levels of management to efffectivelydeal with. In short, you want to work for an organization with a future, where there is room for new departments and initiatives – these are opportunities to grow. Regular communication and evaluation connote openness and a spirit of collaboration.

Physical Environment

What do you call a sociopath in a cubicle? A co-worker!

The humorous cartoon character of Dilbert has long been an icon of the employee as a number, not an individual. Adrift in cubicleland, Dilbert has wryly observed his hopeless situation and the lunacy of his company.

However, Dilbert aside, physical environment is of overwhelming importance in establishing the right tone in an organization.

The physical layout of office space should be a visible manifestation used to reflect and reinforce the organizational structure, without, however, making lower level managers feel subservient. However, chain of command should be visually represented, as this layout will facilitate communication.

Employee privacy should be paramount in the design of an office layout, in that a degree of physical privacy should be supported by limitation of noise levels from co-workers as well as pass-through office traffic.

Ergonomic layout of individual works areas should include space optimization, ample file storage and spacious work surfaces, and an analysis of “primary reach” that analyzes ergonomics.

Break or lunch rooms are necessary oases where employees can sit and refresh themselves, and an outdoor area can also be a welcome respite from work.

The overall goal is to provide a thoughtful workplace design that facilitiates productivity by enhancing the environment.

Lesson Learned: Your office space is truly your “home away from home,” and should be worthy of some personal touches that humanize a possibly sterile space. Adjusting lighting (softer), playing some background music (where permissable), and adding personal objects helps facilitate the realities of work and gives some warmth to your work setting.

However, there are limits to everything. I recall a co-worker whose love for sports went overboard in terms of the array of sports memorabilia in his office. His mini-hall-of-fame approach to interior decoration became an overwhelming distraction whenever we met. It became out goal to steer customers clear of his office whenever they visited our facilities.

Psychological Environment

The psychological environment is the external image a corporation reflects to its stakeholders. Positive company morale and communication style gives stakeholders the impression that conpany employees are well-motivated because they work in a healthy psychological environment. Like a mirror, good psychological environment, which encompasses most of the elements here stated, reflects employee empowerment, growth, and productivity.

This environment gives a longer-lasting vibe to stakeholders than any brand strategy.

  • Do stakeholders (especially customers) ever ask if there are job openings at your organization?
  • Do stakeholders ever remark at the positive/negative aspects your work environment?
  • Is there a frequent mention of code words/expressions, such as “jon security”, “emergency”, etc.?

Lesson Learned: There is no way to hide a psychologically toxic company.

This condition colors all relationships with suppliers and customers alike, as they suspect that either you or the company (or both) have no future. Credibility is under question, and customers/suppliers are reluctant to tie their futures to a company with a threatening attitude.

Data and Information

A company’s plans and strategies must have some basis in fact. Intuition and qualitative data are frequently good sources of input for sound judgements, but factual data must play a role.

Decisions must have appropriate data as a quantitative foundation for ongoing analytical review.

This is the first step in establishing a fact-based, decision-making culturein the organization. Fact-based cultures should also include a broad access to knowledge for employees, easy-to-use systems navigation, accurate and trustworthy data, and a close business and IT collaboration.

To determine if an organization generates, qualifies, and analyzes data, review these questions:

  • Is data regarded as a means or an end in the organization?
  • Do endless streams of data translate into information at some point?
  • What data is essential to running the business?
  • How is data analyzed and disseminated?
  • What is the role of data in new product development, sales tracking, and general opportunity analysis?

Lesson Learned: A typical organization generates a huge amount of sales, financial, and marketing data. The key to successful use of this information is the inhouse expertise to convert this data into useful knowledge. This responsibility goes way beyond the IT department to the managers and users of the information.

Useful information is the foundation for sound decision-making, the end game of data gathering.

Analytics, the process of understanding and utilizing data, enables employees and their managers to out-think and out-execute the competition, according to Jeanne Harris is the Director of Research at the Accenture Institute for High Performance Business. Harris has closely studied the analytics phenomenon and how analytics tools are successfully incorporated into existing infrastructures and cultures.

“Analytics fundamentally change the way people make decisions, as they use corporate and external data, linked with statistical analysis and predictive modeling,” states Harris.

In a 2006 survey, Acenture Institute revealed that 30% of senior managers stated that they use their enterprise systems to significant support and decision-making capability, vs only 19% in 2002.

Risk Taking Strategies

"If things seem under control, you are just not going fast enough."

—Mario Andretti

At some point you will need to take calculated risks in your position. Your intuition, in addition to having some helpful facts at hand to support your position, will aid in making these necessary decisions.

But, in the final analysis, there are no certainties, no matter how much information you have. Your inner sense of security must be occasionally challenged by risk-taking.

Look upon risk-taking as the price of admission to career success. For you and your organization, learning is not possible without failure and failure is not possible with risk-taking.

Risk-taking stretches personal and corporate goals, and sets challenges.

The main cultural risk-taking questions are:

  • Is the company in general a risk-taker?
  • Are real risks openly acknowledged as such?
  • How often does it launch new products/line extensions?
  • How many new departments have been established in the past year?
  • How many new positions have been created?
  • How many acquisitions/divestitures have occurred recently?
  • How have past failures been regarded?
  • How much time was spent on “finger-pointing?”
  • How much time was spent on analysis (learning)?

Lesson Learned: No company can be successful without taking risks, but it is the calculated degree of risk that is important and the level of risk decision-making that is placed in your hands (empowerment).

Risk-taking can create fear – fear of failure, fear of losing your job, fear of peer or management disapproval. Only senior management can set the tone to make appropriate risk an option.

If an organization is totally risk averse, it is likely that the organization is static and eventually headed for extinction.

Creativity

Investment in a creative environment indicates that an organization values the employee’s time and talent. Creativity is a learned skill that only emerges as an eventual competitive advantage when there is a deliberate effort to imbue employees with the timeto develop their ideas.

Parceling out significant blocks of time stimulate the “gardens” of our minds, and spur innovative thinking.

Scheduled brainstorming sessions, offsite meetings, and incentives for original ideas are several means of promoting creatitivity. These activities are a welcome break from the daily grind, and serve to reinforce the value of the individual employee’s worth. Creative ideas breed employee ownership and pride, and make the employee am integral part of the company’s future.

Peter Goldstone of Hanley Wood, an organization that manages 24 construction-based magazines, has led the recent effort to formalize its investment in innovative, creative thinking with the launch of its Idea Factory. This is a periodic gathering of publishers and editors to brainstorm new ways to capitalize on Hanley Woods’ main construction markets and subsectors.

“Employees want to work within an oganization where they know their voices are heard and their ideas can be moved fairly quickly,” Goldstone stated.

Ask yourself these questions:

  • How are new ideas generated at the company?
  • New products
  • New processes
  • New policies
  • New markets
  • Are there committees permanently in place to handle these issues?
  • Is there time formally allocated for employees to relax and brainstom on a regular basis?
  • How is creativity measured?

Lesson Learned: The creative process is part of your career development and affords you the opportunity to re-assess your skills and view your position and responsibilities from a unique perspective. Breakthrough discoveries obtained from the creative process can represent great achievement and a real sense of learning – this can be a wonderfully fulfilling moment in your career! The right environment can make it happen.