Vitamin C for Enterprise Growth: Harnessing the Culture Edge

“Until I came to IBM, I probably would have told you that culture was just one among several important elements in any organization's makeup and success — along with vision, strategy, marketing, financials, and the like. I came to see, in my time at IBM, that culture isn't just one aspect of the game, it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.” — Louis V. Gerstner, Jr., Former CEO of IBM

Over the years, the space of organizational culture has evolved from being viewed as a soft intangible to being respected as a crucial nutrient for enterprise health. Be it in the form of enterprise values or recognition opportunities, capability frameworks or high potential definition, what gets measured and who gets rewarded is, most often, the most authentic representation of enterprise culture. Between the spoken and the unspoken, the prioritized and the ignored, it is often the latter end of the spectrum that tells a truer tale. An organization that I was once associated with spoke extensively about their global talent mindset, and yet a quick glance at their senior leader succession pipeline revealed a distinctly regional tilt. Another firm spoke about valuing divergent perspectives and interestingly had its maximum attrition in the 6 months to 1 year tenure bucket with “inflexibility in ways of working” being the most common reason for middle management and senior leader attrition. Changes over the last few years, especially with the COVID-19 pandemic, have brought many things into sharp focus … and what has become more crucial than ever is the need to focus on organizational culture as one of the cornerstones for enterprise growth, differentiation and sustainability.

Here is an interesting stat – 8 out of 10 people that I spoke to while writing this article told me that if they want a “real” view on a prospective company’s culture, they look at Glassdoor comments. The other two said that they look at the behavior of the people whom they are interacting with, be they on-rolls employees or third-party partners of the firm in question. While this can be anecdotal and so taken with a pinch of salt, what is fascinating is the work that MIT Sloan Management Review and Glassdoor have introduced in the form of Culture 500. An online interactive tool, Culture 500 compares and ranks company cultures in some of the most high-profile U.S. companies by applying artificial intelligence (AI) and research insights from Glassdoor’s data to rank companies on nine culture dimensions, including collaboration, integrity, agility, diversity, customer orientation, execution, innovation, performance, and respect. Elsewhere, leading deal makers and firms involved in mergers and acquisitions are expanding their teams to bring culture specialists into their core teams because culture understanding and due diligence at the target assessment stage is being increasingly viewed as a crucial input into ensuring the success and failure of deals. Having been on both sides of the fence as a consultant supporting due diligence/integration as well as as part of the internal integration management team, I have experienced several situations where decisions on policy come down to not just the financial implications of policy harmonization but the impact that it would have on people experience. These are just a handful of examples that showcase the need for organizations to invest time, energy and resources for meaningful work in the space of organizational culture in their own context. After all, as Peter Drucker, management consultant and author, famously said – “Culture eats Strategy for breakfast.”

Richard Branson, Founder, Virgin Group, very rightly said – “There’s no magic formula for great company culture. The key is just to treat your staff how you would like to be treated.” As I reflect on some of my learnings over the years, here are a few thoughts that I’d like to share for consideration, while acknowledging that each unique context will drive the realities of application.

1.??????Being authentic is special

“In this ever-changing society, the most powerful and enduring brands are built from the heart. They are real and sustainable. Their foundations are stronger because they are built with the strength of the human spirit, not an ad campaign. The companies that are lasting are those that are authentic.” – Howard Schultz, CEO, Starbucks

Fun fact – human beings are really adept at reading between the lines! When leaders say what they don’t practice, and do what they tell others not to do, it results in a loss of credibility which becomes a part of the DNA of the enterprise. It takes all kinds of courage to be authentic, especially in the face of tough situations and vocal audiences, but that is where the power of organizational culture and ethos gets demonstrated. Having the courage of conviction to be true to who you are and what you stand for goes a long way in making the intangible tangible.

Points to ponder and act: How are you ensuring authenticity in your context? Do you have conscience keepers who hold the mirror up to any inauthentic behavior? Do they feel safe to do so or does fear of reprisal hold them back? Do you have a culture team that works to architect a culture narrative, strategy and roadmap for the enterprise – be it articulation, communication or reinforcement?

2.??????Celebrate who you are, without exception

“Our culture is friendly and intense, but if push comes to shove we’ll settle for intense.” – Jeff Bezos, Founder and CEO of Amazon

At the end of the day, it is about getting the job done – the why, the what and the how. Don’t underplay or undervalue your edge … it may not be cool or sexy when compared with others, but if you are convinced that it is the way to go then make it a core part of your identity and your value proposition, and bring in and grow people who are aligned with it. Right from the beginning, let people relate with the culture attributes as a way of delivering on business goals and objectives, of growing and sustaining the momentum.

Points to ponder and act: Is there a divergence between what the organization feels is needed for success and what is spoken about? Are you telling enough stories on why you value what you do? Are enterprise heroes and role models living what is being spoken about? Are these expectations clarified and embedded into promotions frameworks and development paths? ?

3.??????Keep the narrative simple and purpose-aligned ?

“Culture is simply a shared way of doing something with a passion.” – Brian Chesky, Co-Founder, CEO, Airbnb

With the dawn of the Information Age, we live in a world where facts and perspectives are available in abundance, often significantly more than what we may need or want. Numerous sources of insight – whether they are driven by human or artificial intelligence – clearly showcase the need to keep the narrative simple and tap into the purpose of people. By creating the linkages between individual purpose and enterprise purpose, a lot more can be achieved. A 2021 blog by the Great Places to Work mentioned that the top thing that millennials are looking for is fair pay and personal meaning in the work that they do, and if those do not align then they are comfortable to explore alternatives without hesitation. Given the presence of multiple generations in the workforce, this raises further need to simplify and reiterate the focus on purpose and unlocking value for people.

Points to ponder and act: Are people leaders / managers / supervisors in your context having discussions with team members to understand their purpose and create a purpose linkage between individual and enterprise purpose? Are the internal mobility and development processes and programs in your context enabling people to grow in a manner that balances their aspirations for themselves with that the enterprise wants from them?

4.??????At its core, it’s about human beings and relationships

“The biggest challenge was to restore a dying organization, which was losing money, to growth and profitability. The first steps were not: Cutting costs, developing new products and/or services, inventing clever new marketing concepts, or clever advertising! Instead, the first steps were: Rebuilding a culture where all employees were a family, striving for a “shared” success! The basis for this success turned out to be winning major races again.” — Peter Schutz, Retired CEO of Porsche AG Worldwide

It is fashionable to talk about shared goals and shared accountability but what makes it real is when triumphs and rewards are shared! The feeling of belonging to a community or a tribe in the workplace tends to get people to unlock their discretionary effort and truly invest in the “we”, because the focus on “me” is taken care of. One of the attributes that the Armed Forces have always exemplified is the focus on being human and building relationships that go much beyond the boundaries of hierarchy ... it is through these relationships that the fabric of teams and units becomes more tightly knit than any team building intervention can ever help achieve.?

Points to ponder and act: How is your rewards and recognition strategy structured? Is there enough opportunity for teams (hierarchical and goals-based) to be celebrated, recognized and given special opportunities/access or is the model more focused on spotlight for a few and a high degree of individual differentiation? Are people leaders / managers / supervisors coached on how to build effective teams.

The discussion on organization culture is as vast as the oceans. This is a space where the actions of each and every member of the enterprise contribute to the impact but the tone truly needs to be set from the top. Enterprises where the CEO views culture as their primary focus area are often the ones where customer experience and people experience reign supreme because that is the DNA that gets built amongst the generations. It is so distinct that it can be called the Enterprise Fingerprint. In their book “Uncommon Service: How to Win by Putting Customers at the Core of Your Business”, authors Frances Frei and Anne Morriss write – “Culture guides discretionary behavior and it picks up where the employee handbook leaves off. Culture tells us how to respond to an unprecedented service request. It tells us whether to risk telling our bosses about our new ideas, and whether to surface or hide problems. Employees make hundreds of decisions on their own everyday, and culture is our guide. Culture tells us what to do when the CEO isn’t in the room, which is of course most of the time.”

There are certainly no easy answers and no consistent formula but that is what makes the journey unique and meaningful!