Culture Dictates Behavior and Drives Results

Building a value-based culture to motivate employees and fulfill your strategy

In recent decades, a gradual power shift from employer to employee has been accompanied by an increasing focus on organizational culture and employee satisfaction. We have created lists dedicated to the “Best Workplace Cultures” or “Top Companies to Work For,” paying homage to those that have gotten it right. We have also been enthralled by the gossip surrounding cultural mishaps. Following exposés and case studies, we have examined companies like Uber, Wells Fargo, and Foxconn Technology Group through a microscope, condoning their behavior and critiquing their corporate cultures. While “culture” is entrenched as a business buzzword, many companies still struggle to understand what culture truly is and how to build an effective one.
 

What is company culture? Culture is the summation of organizational norms and shared assumptions that dictate behavior.  It is the byproduct of thousands of interactions. Through these interactions, we embed patterns in our companies that subconsciously guide us and form our cultures. Culture and leadership are inevitably linked therefore by these patterns that often form at the top and infiltrate into the rest of the organization. To take a basic example, if the CEO is always late, then his or her colleagues may feel they have permission to be tardy. Over time, lateness is accepted as the company norm. Meetings never start on time, deliverables arrive past due, and people wander into the office at different hours.  A casual air about timing becomes embedded into all parts of the organization. 

I have worked in competitive cultures where leadership values results at all costs. In these companies, teamwork is often hindered by the employees’ need to protect their proprietary knowledge and exalt themselves as the company hero. In high-pressure, high-performing organizations, culture is often characterized by defensive or protective behavior. Over time, these cultures erode, typically resulting in disengaged employees, or in severe cases, unethical conduct.

On the other hand, cultures founded on collaboration and transparency create productive workplaces revolving around honesty and teamwork. Again, it’s up to the leaders to shape these patterns. For example, CEO of Bridgewater Associates, Ray Dalio, encourages a culture of radical transparency where “employees [can] have ‘thoughtful disagreement’ and exchange controversial ideas without creating problems.” By adopting a transparent culture, Bridgewater reduces bias and stimulates conversation. This fosters an environment where employees can openly voice their opinions and challenge one another’s ideas. 

Culture is King. An organization can have all the talent, skills, and capital in the world. However, if the behavioral patterns spawn a toxic culture, the workplace norms will eventually limit organizational viability. Culture is not just a mechanism to attract, retain, and motivate employees; it’s the fuel that drives talent and organizational strategy. Without a positive culture, company success is bridled.

Step 1. Found your culture on your values: Cultures shape behavior without setting explicit rules, governing what is appropriate, inappropriate, valued, or discouraged in the workplace. Therefore, it’s important to ensure your culture is rooted in your values. Promote behaviors that support your values and punish conduct that contradicts them.

Establish clear expectations upfront, so if you notice damaging patterns emerge, you attack them head-on. 

Step 2. Acknowledge your Starting Point. I often receive a mixed bag of answers when asking leaders, “How do your employees feel about your corporate culture?” To transform your culture, you must know where to focus. Your employees will provide you with candid feedback. To achieve this:
 

Step 3. Walk the Talk. Almost all companies launch with the intentions of forming a strong corporate culture. They encourage learning and growth and demonstrate a clear path for promotion in the organization. They inspire through mission, vision, and values statements. When starting out, they believe in and speak to a strong culture.

However, maintaining these values as companies expand, change, or face inevitable road bumps is achieved through action.  To modify a phrase used by Dieter F. Uchtdorf, leaders should preach the culture every day and when necessary use words.  Company culture is not built by talking about it, it is built through doing. 

I witnessed a clear cultural challenge when consulting a medical sales corporation.  One of the most successful sales reps for the firm opposed the strategy and poisoned the culture. Though he was charming, possessed unique skills and capabilities, and maintained a large book of business, he didn’t exhibit the leaders’ desired values (and was a negative influence on others). The company had to let him go and accept losing some customers to preserve their culture. Though this was a difficult decision for leadership, it set an example for the employees and maintained the integrity and values of the organization. 

Former CEO of IBM Louis Gerstner stated, “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.” Fostering an intentional culture will set the tone for employees’ behavior and communication with each other and with customers. Culture is a key tenant of strategy and a driving force within your company. Ensure that your work environment reflects your values and guiding purpose.

The CFO of an international billion-dollar company, and management consultant, Steve Coughran has over two decades of experience driving business excellence. His newest book is Outsizing: Strategies to Grow your Business, Profits, and Potential.  Visit www.SteveCoughran.com  Connect Steve Coughran Follow @SteveCoughran