3 ESSENTIAL HABITS EVERY CEO MUST BUILD INTO COMPANY CULTURE

The world of work has changed. (You've noticed!) 

Fiercer, faster, more competitive times demand a new caliber of modern leader. One who can juggle a trifecta of success factors for any business today: Innovation (ongoing change and experimentation), profitable growth, and caring for people.

Corporate culture – characterized by Dilbert-style politics, power-driven hierarchy, and inflexible one-way work arrangements - is dead. (Note: Big corporations are not the only ones where this kind of work culture is still firmly in play.)

This is not because corporate culture was ineffective. A societal wave of middle class wealth was born from it. But corporate cultures were built for efficiency, and cannot keep pace with the needs of the digital era. Of equal importance, Millennials (the largest generation today) have significantly different values than prior generations about leadership, culture, as well as where, when, how and with whom work is done. To them, it's not change-friendly, mobile, or people-centered, based on the core value that we all deserve to ENJOY both life and work.

Entrepreneurial culture – the capacity to collectively and sustainably thrive and change in the face of failure and insurmountable odds – has never been more important.

To grow and be relevant in today's world ... CEO’s must build 3 essential habits into their company culture. These habits of entrepreneurial culture are core principles that underpin a society in rapid change, driven by values of diversity, participation, and freedom.

Creating your unique thumbprint on a culture that can deliver business success AND a great workplace, is your responsibility as the CEO. Like dogs mimic their owner, culture mimics leaders. This begins with the top leader. Always. If you are seeing cultural issues such as lack of accountability, lukewarm performance, excuse-making, decision paralysis, or other attitudes and behaviors across the organization that hinder greatness and performance, the answer and solution will always begin with the top team.

Here are 3 central habits all modern cultures need to move at the speed of change, and attract and retain talented people.

HABIT #1: EMPOWER FREEDOM.

Freedom of choice is the most precious and fundamental human drive. It is especially near and dear in American culture. The Millennial generation did not invent the desire for freedom! (although clearly, they're flying the Freedom Flag high.)

You cannot be in business without customers who choose your products or services, right? Employees are your new customer.  For one simple reason: They can and do choose where, when, with whom, and which cause to dedicate their time and energy.

In a job market where unemployment is the lowest in decades and expected to continue - the largest generation on the planet (Millennials) vote with their feet. They won't be tied to a single company or job. In fact, experts predict (conservatively), over 50% of the workforce will be freelance status by 2020 – whether full-time or moonlighting.

Thus, requiring HR and leaders to rethink "What does it mean to have employees?"

Further, younger employees don't place as high a value on monetary gains and climbing the corporate ladder. They want to grow and be challenged frequently, but not at the expense of their freedom. Freedom from being micro-managed. Freedom from being viewed as entitled and untrustworthy, as they learn how to contribute to an organization. Freedom to make choices and decisions that benefit their life and family. Freedom to join friends on a trek in the jungles of South American without a cell phone and computer. Freedom from an impossible choice between my well-being versus a job.

For this generation, empowerment means "I call the shots in my life" and "I have choice."

Empowerment for this generation, is claiming sovereignty over one’s life energy and well-being.

Old school "corporate culture" thinking suggests unleashing empowerment organizationally will result in chaos. Relinquishing control means there will be less innovation, profitable growth. Consider this: Many systems in the natural world navigate complex change far better during chaos - ie, the system will correct and resolve naturally, even if a part of it becomes extinct. (What pet projects and ideas, if made extinct in your business, would make room for change?)

Consider this notion: Freedom and productivity are like a good marriage: Based on trust, constant compromise, and goodwill. When good people flock together, and invest in cultivating a culture of clear prioritization, decentralized decision making, good feeling vibes …miracles happen. Ask Netflix and Zappos. Both disrupted entire industries while eradicating traditional hierarchies and rules.

Also, while scaling impressive growth and ROI.

Teaching freedom and responsibility is possible in every company; even highly regulated industries (airlines, food service, healthcare). You can always find ways to feed people’s innate huger for freedom of choice.

Think of your employees as Freedom Agents - aka, Volunteers.  Empowerment means adopting a mindset that is natural to entrepreneurs: Growth and innovation are the engine of capitalism, and people are the fuel.

HABIT #2: EMBRACE RESISTANCE.

Newton’s 3rd law of motion states: “For every action, there is an equal and opposite reaction.” In an advanced society, freedom is defined by the ability to set limits. Yes is defined by No. 

Wise leaders know that initiating change – the heartbeat of any business – will be met with resistance (sometimes passive, sometimes active.) Smart leaders welcome and expect it.

The iconic “Yes-Man” of 1960’s culture has no place in today’s business. Cultures that are afraid to speak up ... or, can't say "No" to the boss or engage in vigorous debate ... are a brick wall to change. The energy aimed to protect the status quo is not pointed to the future.

Do you, the President, walk AND talk a core value of challenging the status quo, ideas, sacred cows?

Conflict-aversion is a long-standing problem in many native cultures. Speaking as an American, my generation (Boomer) was raised by the Traditional “children are to be seen and not heard” generation. We were (mostly) not taught how to debate and disagree, effectively. With the speed of business these days, healthy conflict, dissension and debate is crucial, yet most people are not schooled in it. This leads to shuttles blowing up mid-air, costly mistakes and overruns on projects, being blind-sided by a more tuned-in competitor.

Embracing “No” energy – often suppressed or forbidden – doesn’t make it go away. It just goes underground. Demonstrate visibly that the ability to call “No!” (in respectful ways) is an important skill for your leaders and employees to practice. The ability to act from curiosity and facilitate debate is an essential habit for the modern leader.

It also builds trust.  It doesn't mean people have the final decision or authority to run toddler-style “No!” rampages in the business. Rather, it creates a cultural norm of discussing issues in a well-rounded way: “Why this will and won’t work.”  Entertain the debate! Not because it's easy; because you know it will make your business stronger.

Practice this beginning with the top team, and promote leaders who can engage healthy debate. (Even if you think it's happening in your company, it can be made stronger.)

In the chaos, inevitably will emerge order – and stronger buy-in to change.

HABIT #3: TRAIN RESILIENCY.

In the physical realm, resilience is the capacity to easily bounce back after being stretched, bent or compressed.

In the leadership realm, it is the capacity to bounce back from adversity, be emotionally stable, consistently “shake off” the past and keep moving forward.

It is also the capacity to digest stress – which is (unfortunately) synonymous with modern life.

In business, Resiliency is more important than ever. It takes intentional (and patient) work to cultivate Resiliency culturally. There are some who believe it’s innate, but learning Resiliency is both possible and necessary in today's world of transparency and intensity.  I am not talking about the kind that lacks empathy (eg, military boot camp). Positive Resiliency says “We can do this” and “We always keep our feet (and discussions) pointed forward.”

Resiliency is grounded in knowing what you stand for – really. (WHY you do what you do, and what you will not do.) Having a focused Mission. Optimism against the odds. Well-being and self-care as your fuel.

It is absolutely imperative for CEO’s and leaders to visibly model this skill, if they want to keep a team forward-focused and winning.

What happens when resiliency is low? Adversity (under-performance, unexpected setbacks) create fear, turf-protection, finger-pointing, posturing. This undermines trust in your culture - and your culture is without question, your engine for innovation and progress.

Resiliency is the wellspring of long-term renewal and growth. Without it, extinction is a sure bet.

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In the quest for rapid change, maximizing efficiency and elevating productivity, leaders must intentionally cultivate the ongoing capacity for innovation, change, and renewal.

Invest in these three habits - empowering freedom, embracing resistance and training resilience - to ensure peak performance. Because strong, competent, resilient, empowered people move mountains.

And, help you leave your competitors in the dust while crossing the victory mark.