Culture Matters! How Fast Do You Drive?

First a quote: “Culture eats strategy for breakfast!” ― attributed to Peter Drucker

Hello and happy Monday,

(I took this weekend off to focus on family… and a little basketball. Updated and revised; originally published on February 18, 2019)

While many people attribute the above quote to Peter Drucker, it should be noted the phrase does not appear in any of Drucker’s 39 published books on management theory. Regardless of its origin, anyone who has ever attempted a large-scale change initiative knows there is at least some truth in the statement.?

The implied message is that a company’s culture is more important to the organization’s success than some grand strategy. Bottom line, it doesn’t matter how wonderful your strategy is if your existing organizational culture won’t support it; or worse yet, attacks the strategy like the human body attacks an infection. ?And yet, so few leaders measure, monitor, or intentionally shape the culture of their department, function, or organization.

Why?

I suspect, in part, because culture seems so “squishy.” It is perceived by many as “soft stuff.” Or, leaders assume, “our culture is what it is,” and can’t be measured, shaped, changed, or reinforced.? Or perhaps they’re just too busy fighting the fires of the day to focus on culture.

That is a mistake.

I have said this before, “the soft stuff, is the hard part” when it comes to leadership responsibilities. Organizational culture is seen by most as a “soft stuff” challenge. When it comes to organizational norms, behaviors, actions, and results, culture is a stronger force, than strategy, policies, management edicts, and glitzy marking campaigns.

Let me use a simple example.

Envision a local highway, interstate, or thoroughfare near your home or office during a “non-rush hour” time of day. Have a road in mind? Now, let me ask you two questions. First: What is the posted speed limit on that road?”

And second: “How fast do most people drive on that same road?”? For this discussion, let’s assume you have envisioned a road with a posted speed limit of 65 as pictured above.? And now, what is your answer to the second question: “How fast do people drive on that same road?”

I have asked workshop participants these same two questions for years. Most people answer the second question with something like, “You’re safe up to five or ten miles over the speed limit.”? What I find interesting; they’re not talking about their physical safety here; they’re talking about “safe” from not getting a speeding ticket from an officer of the law.

Here is the point; the law says, “Thou shalt not drive faster than 65 miles per hour on this section of road.”? The sign is not a suggestion; nor does it say 65ish, 65 plus 10, or “go with the flow.” It says the speed limit is 65! And yet, our culture seems to say, “It is OK to drive five to ten miles an hour over the speed limit.”

Most don’t even see driving faster than the speed limit as a violation of the law. (You can even buy radar detectors to aid in the violation of the law.)

Repeating, culture matters because it controls human behavior, with more effectiveness, than any speed limit sign, policy, procedure, or management edict ever will.

This same phenomenon is at play in every division, function, and department in every company around the world. We put up posters in our break rooms announcing: (pick your favorite)

• Customers are #1
• Employees are our greatest asset
• We value diversity & inclusion
• Quality First
• We value your ideas
• We start meetings on time

And then, there is what culture dictates. What actually happens on the shop floor, in stores, offices, in the field, or around the water cooler. Which behaviors are rewarded, and which are punished? What do we avoid, or when do we look the other way?

What cultural norms are dictating behaviors and actions, almost like magic, in your business unit?

As most of you know, I fly too many miles on too many airplanes. I meet a lot of flight attendants. I’m also more than just a casual observer around the topic of customer service. There is a noticeable difference in service levels between airlines. If you fly a lot, you know what I’m talking about.

There is a reason why Southwest airlines has been the most financially successful airline ever, in 2019 SWA posted its 46th consecutive year of profitability. They had a net income of $2.5 billion from annual revenue of nearly $22 billion that same year.

They also returned $544 million to their employees under the company’s profit-sharing plan. They treat their people like owners of the business, not employees.

"Customers will never love a company... until the employees love it first." - Simon Sinek

My experience is that Southwest Airline flight attendants are among the friendliest people in the industry. They tend to be caring, fun-loving, often funny, people who genuinely love their jobs. (By the way, if you haven’t noticed, their culture is not afraid to use the word “love” in their communication.)

These behaviors aren’t managed by policy or edict. They are discretionary behaviors encouraged and rewarded by a supportive organizational culture. Southwest Airline’s organizational culture is not an accident. It has been created, crafted, and manicured intentionally, and by design over many years. It didn’t “just happen.”

How about the culture you lead? Have you given it the attention it deserves??

These are important questions because you are shaping your team’s culture, either accidentally, by happenstance, or by design.

Culture matters!

Your level of success depends upon the culture you are creating through your everyday actions and decisions. Be intentional! If you haven’t done so yet, start today!

How will you live, love, or lead differently, or better, this week?

Have a great week!?

Sincerely,

Bryan Yager

“Expanding Your Capacity for Success”

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Bonus Quotes:

• “I used to believe that culture was ‘soft,’ and had little bearing on our bottom line. What I believe today is that our culture has everything to do with our bottom line, now and into the future.” – Vern Dosch, author, Wired Differently
• “Culture is simply a shared way of doing something with a passion.” – Brian Chesky, Co-Founder, CEO, Airbnb.
• “Being a great place to work is the difference between being a good company and a great company.” – Brian Kristofek, President and CEO, Upshot
• “Customers will never love a company until the employees love it first.” – Simon Sinek, author, Start with Why
• “Corporate culture is the only sustainable competitive advantage that is completely within the control of the entrepreneur.” – David Cummings, Co-Founder, Pardot
• “There’s no magic formula for great company culture. The key is just to treat your staff how you would like to be treated.” – Richard Branson, Founder, Virgin Group
• “Performance more often comes down to a cultural challenge, rather than simply a technical one.” – Lara Hogan, Senior Engineering Manager of Performance, Etsy