Fixing Company Culture
There is no better corporate cultural meme than the Windows 95 launch party. Somewhere between the Steve Balmer shrieks and the Bill Gates shuffle - the Microsoft culture was on full display.
But how do we define company culture - and why are so many organizational value statements shallow and stale? If culture is defined as "the manifestation of our collective achievement", why are so many clearly full of baloney?
I have a deep belief that our culture matters. How we behave, what we prioritize, and when we organize defines our society - and when we present nutrition-less versions of culture, it hurts us as individuals and as communities.
So how do we fix it?
The goal of the next 5 minutes is to walk through the two questions that drive organizational culture, their common traps, and examples of them done well.
The two questions organizations should prioritize, and often do poorly, in building their organizational culture are:?
Most CEOs can provide an answer to the first - I don't think you can last long without self-awareness. However, there is a caveat which defines bad vs average cultures.
If the the individuals making the objectives confuse personal goals such as "be the best CEO" or "make $100m before 40" - then we are not a culture designed for others - we are a culture designed for you. Most commonly this is when organizations throw half-hearted musings onto the walls such as "Integrity", "Teamwork", or "we're all a family". This is bad organizational culture.
Whenever I hear "We're a family" I think of the commercials with Reggie Miller in his PJs, being told "Sir, this is a Wendy's". If our objectives are a one-way street to your goals, "Sir, this is just a paycheck & healthcare."
However, I do believe many CEOs view themselves as stewards and want to align employee success with their own. For these companies, it's the second hurdle -?defining what principles drive how we respond to change - that proves the challenge and the difference between good and great culture.?
Let's take a look at a company that does this well, Patagonia.?Every tech bro & banker I've worked with can't resist the charm of a Patagonia vest. And yet despite the moral juxtaposition, the reason Patagonia has such a strong brand is because of its principles:
Can you imagine if these were the principles of Exxon Mobile? If they said they would cause no unnecessary harm and protect nature. I may still be skeptical of their historical impact, but I would feel better about the direction they want us to go.
Instead, ExxonMobil's core values comprise "work flexibility, safety and security, recognizing human rights, integrity and diversity and inclusion.”
......as might as well just say the world can burn as long as quarterly numbers are hit.
It's probably not fair to compare an outdoor clothing brand with an oil company - but let's look at Patagonia's competitor, Arc’teryx [pronounced Ark-tear-icks]
The values of Arc’teryx are:
They may make a great product - but which brand would you rather work for?
Arc'teryx does not have principles, it has corporate speak baloney that limit employees ability to adapt to change. Employees cannot use these as a direction for how they should behave, and managers cannot use these as direction for how they should lead. What is clear is how executives can judge performance.
Organizational values like Arc'teryx, that are philosophical and academic, are not designed to represent the road to creative discovery. They are designed to be highways of efficiency - to pave over human nature and allow executive goals to drive as fast as possible.?Arc’teryx CEO joined in 2021 - I wonder where he wants his employees to take him because it's certainly not to protect nature or not be bound by convention like Patagonia.
Culture has a shelf-life - if it's not kept in the right environment, it can spoil quickly
When we replace principles to drive our behaviors with values to satisfy stakeholders it's the equivalent of moving fresh fish from the fridge to the counter. Not only does it stink - but the longer it sits out, the more likely it's consumption is going to lead to toxicity.
The incredible success of shows like Succession or Severance is driven by their ability to capture this toxic environment and the organizational structure that supports them. They're popular not because they are entertaining, it's because they're so relatable.
No, we don't want to celebrate monetary goals with a Melon party. Maybe ask 2010 Katy Perry.
I'm sympathetic to the enormous challenge of building a meaningful culture. I don't think any executives sit down and think "how can I disengage the hell out of my employees while showing the immense value of my secondary education". Ok, maybe just the second one.
All joking aside, if you are in a position to influence culture, ask the question: What principles makes your organization who they are and how should you as a company respond to change?
I imagine both Patagonia & Arc'teryx product designers are talented - and value the virtues of craftsmanship and timeliness designs. But one of those designers has been empowered to adapt to change by going beyond convention, focusing on reducing harm, and protecting nature. I don't know anyone at Patagonia, but I don't need to know them to understand who they are and what they stand for.
If your culture is not clear to individuals externally, or you find yourself creating internal meetings to make sure everyone "gets it", now would be a good time to update your values to principles.
I can hear the sizzle of board expectations, sales goals, and internal conflict - pulling our organizations towards default cultural choices with high-brow narratives that keep us safely employed yet unremarkable.
It doesn't have to be this way - culture is simple but hard to fix, and I hope we all take on this meaningful challenge in our organizations.
Perhaps Paulo Coehlo summarized it best:
"Don't allow your mind to tell your heart what to do. The mind gives up too easily" -Paulo Coelho
Great article! Boom!