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Archive for the ‘Culture’ Category

Company Culture: Weeding Out Diversity

Monday, April 25th, 2011
multi-colored gummy bears

photo by akean2

A couple posts ago we wrote about a poll RoundPegg had posted (login req.) on LinkedIn asking whether people would be willing to complete a 25-minute assessment to help identify how well they fit the culture of the company to which they were applying.

There were some strong opinions in the comments, both pro and con.  The takeaway is that many people who are against assessing whether they fit a culture have a different understanding of what culture is altogether.

“Homogeneity and lack of diversity are bad.”  That rebuttal may sound compelling but it has nothing to do with company culture (at least not how we define it).

What they mean is that you don’t want a company who thinks alike or, even more cynically, doesn’t hire people of certain races, genders etc.

First, let’s clear a few things up:

  • * Culture has nothing to do with the color of your skin, your age or what associations you have
  • * Culture is not what or how you think
  • * A homogeneous ‘culture’ doesn’t mean that everyone blindly agrees

 

Culture is about values.

A company rewards what is collectively valued (e.g. being decisive).  And individuals are motivated by what they value.  You WANT those two to be aligned.  Desperately.  A lack of diversity/homogeneity in values is a good thing.

When people are rewarded for doing things that motivate them, they will work a hell of a lot harder and produce far better results.  They find themselves swimming downstream instead of up.

With respect to diversity, nobody should be discriminated against because of race, sex, age, disability – absolutely.  But that doesn’t mean you get better results when you mash people together with wildly different values (see: Congress).  Nor does it mean you get people who think alike.

Everyone comes to the table with different life experiences, different work experiences and different interests.  All of those create the diversity of thought both sides of the conversation desire.

Imagine we both value ‘being decisive.’  Without talking about it beforehand (ground rules are rarely set for our work conversations) we have implicitly agreed that we need to make a decision quickly and move forward.

But because we’re both seeking a quick decision that doesn’t mean we agree on the solution.

Sharing a value system creates a strong foundation upon which to constructively disagree.  We both understand the motivational forces behind the others’ argument.  So when I abruptly deliver my solution you aren’t going to see my curtness as a personal slight.  It’s not that I don’t value your opinion.  But I value our time more.  We can discuss it rationally (but quickly).

All those things we call ‘politics’ are lessened when we share a common set of values and we can now focus more on solving our business’ challenges instead of deciphering what the other meant in our last conversation.

When we talk about company culture let’s put aside the automatic reflex to fall back on diversity and start critically thinking about what culture actually means.

Company culture is what is valued and what is rewarded.  Period.

 

 

Company Culture and the Rockstar CEO

Thursday, March 24th, 2011
rockstars

photo by michellerocks :)

It’s almost universally acknowledged that a company’s culture matters.

Some companies go to great lengths to ensure that they maintain their core values and it truly is the work of everyone in the company to set the social norms and out undesired behavior.   Often though, the ‘good cultures’ become inextricably linked to a ‘visionary’ CEO.  Even when their motivations are pure, so much of their time becomes dedicated to writing books and giving speeches that it makes it difficult not to get a little cynical. 

(note: we’re big fans of any CEO touting treating employees like intelligent, full-grown adults, but we don’t want their public ubiquity to make it easy for others to dismiss the importance of their words because there are lessons to extract.)

Cynicism aside, there are two massive issues with the rockstar CEO that tend to get overlooked:

  • Culture usually starts at the top so the praise isn’t unjustified.  But it’s time we give credit to the people who manage the culture over the long haul.  The line managers who promote the right behaviors and admonish the wrong ones, the HR teams who build the internal programs to highlight core values and the hiring managers who do a better job than most of identifying those who ‘fit.’ A lot goes into building and maintaining a culture.  The fact that these CEOs have paid as much attention to it as they have is a testament to their understanding of what drives their business forward, but they get too much credit.

 

  • Furthermore, there is no one right culture.  These guys wouldn’t be able to make as much money on the books if they said that but look at the list below.  Almost every one of them has/had a different style.  There is little in common between Jack Welch and Tony Hsieh other than their success.  But, each made it work by fostering a culture that worked for them and their business.  And each was ruthless in their own way of ensuring that the values stuck.

 

[Just a few off the cuff examples - Lee Iacocca, Yvon Chouinard, Jack Welch, Gary Erickson, Tony Hsieh, Gary Hirschberg, Herb Kelleher...and we could go on and on and on.]

Celebrate your culture and live it everyday – just don’t forget that in order to lead you need to have people willing to follow.

 

 

Culture Matters: Business Is Social

Tuesday, March 1st, 2011
stapler

photo by jronaldlee

Company culture matters to your business.  That’s not a terribly bold statement.  But why?

Culture matters because business is social.

These days most of us work interdependently.  Your success is likely predicated upon exchanging ideas with your peers and receiving intellectual inputs from several different departments.  True individual contributors are few and far between in a knowledge-based organization.

A crude example is the evolution from waterfall to agile technology development.   Ideas and new products are created in highly interconnected and iterative processes rather than via assembly lines.  Which gets us back to culture.

We need to know how to exchange information with one another.

Culture sets those norms.  It establishes how we interact, how we make decisions and what’s deemed worthy of reward.

When employees’ value systems are aligned then so too is the company culture.  It becomes a self-reinforcing cycle because everyone interacts and rewards according to their own value system (no matter what the annual performance evaluation sheet says).

A well-aligned culture allows people to communicate freely because the norms are well understood. The ground rules are implicitly agreed upon by everyone who has elected to work there and they are reinforced with every interaction.

When values systems are out of line, cultures ‘go bad.’  Rewards seem arbitrary, nascent ideas are used against their authors or credit is co-opted.

Culture fosters trust (even in cultures that are aggressive and competitive).  In a game of repeated interactions it doesn’t take too many bad experiences to not want to work with a peer again.  Or to withhold your best when dealing with them.  Self-preservation will almost always win out over doing what is best for the business.

The better we all communicate the greater the likelihood of achieving success.  And since we’ve already optimized processes, slashed workforces and off-shored as much as we can there aren’t too many places left to squeeze out more profits.  Optimizing communication and aligning culture isn’t easy, but it’s the next frontier in driving business success.

Interpersonal Issues: Touchy Feely Meetings

Thursday, January 20th, 2011

Hiring people who fit your company culture and team personality vastly improves overall performance, but there is still hard work to be done to make sure that the interpersonal dynamics are being actively managed so that the good work sees the light of day.

Even when people are friends, as we are, and have a lot in common, which we do, there will always be bullshit (our fancy internal term) that arises.  If left unattended, it will take root and blow up spectacularly.

And those festering issues can manifest themselves in other ways.  Someone will shoot down an idea not on merit, but because of who suggested it.  Or someone gets caught up thinking about how they’ve been ‘wronged’ rather than focusing on the business.

There are only so many minutes in a day.  You can either do your best to clear the mental decks or you can ignore the issue altogether, let things build up and then fire someone.

Unfortunately, most companies select the latter option.

At RoundPegg, we’ve chosen a different approach.  We air our concerns and grievances with eachother in a bi-weekly Touchy Feely Meeting (a bit of a misnomer since it’s actually one of the hardest things to do).

We also have the benefit of knowing how each of us are wired and we pull out our ‘Peggs’ at every meeting to remind others of what we value or what our personality is. That makes things more effective…as do the rules we’ve put in place:

  1. 1. Start by stating how a situation makes you feel (When X happened, I felt Y).  Describe the situation and your reaction to it only.  No focusing on what you think the other person intended or their motives
  2. 2. Be vulnerable. Letting your guard down is the best way to prevent the meeting from going south and ensuring that everyone has the same goal of improving the situation
  3. 3. Think. Don’t react. Being defensive is not helpful.  Instead, try to understand why someone felt that way.  Needless to say, attacking is prohibited.  Nobody is keeping score so it’s pointless
  4. 4. Take ownership of making someone feel the way they did/do.  Likely, that wasn’t your intention, but it happened.  Own it
  5. 5. Don’t let issues linger.  It’s okay to agree to think through things as ‘homework’ and revisit in the next session but the person who brought up the issue must agree
  6. 6. Walk out stronger than you came in.  The air should be more clear and will be if people are owning their actions and agreeing to
  7. 7. Work hard. Put real thought into solutions between meetings.  If, like most other meetings, you walk in and wing it then it’s not going to work and you’ll likely violate rule #2.

We’re then posting the output on our internal wiki.  This may be going too far, but we want to have a fully transparent workplace and you can’t get more sensitive than these meetings.  We’ll continue doing so until we’re badly burned.  And then we’ll still probably continue doing so with a tweak or two (like removing names).

As we grow we have every intention of rolling this out for every team.  Frankly, it’s a couple hours a month that are very well spent.  You waste more times doing less productive things, like status meetings.

While I’d like to tell you these are the elixir that cures all workplace ills, it’s too early.  We’ve been at it for a couple of months, but we can definitively say that it doesn’t hurt and that we all believe we’re a stronger team for feeling comfortable bearing our insecurities.

Arranged Marriages and Hiring

Thursday, January 13th, 2011

On the night-stand this week is Sheena Iyengar’s recent book called The Art of Choosing. Like many books in the pop-science vein, there are plenty of studies that are interestingly counter-intuitive.

One study in particular jumped out.  Drs. Gupta and Singh of the University of Rajasthan studied the consequences of arranged marriages and marriages by choice.  The results?

Couples who had been together for less than one year and had ‘married for love’ (i.e. chosen their partners) scored a 70 of 91 on the Rubin Love Scale.  After ten years, they totaled 40 of 91.

The arranged marriages, as you can imagine, didn’t start so hot and heavy.  First year couples tallied 58 points, but that grew to 68 after ten years.

The conclusion Iyengar (and the study’s authors) draws is that, “In an arranged marriage, two people are brought together based on shared values and goals, with the assumption that they will grow to like each other over time, much in the same way that a bond develops between roommates, business partners or close friends.”

The marriage metaphor is often used to describe hiring or accepting a job in the professional ranks.  Both sides spend a little time doing a mating dance, putting their best foot forward and trying to hide their craziness and then make a decision that will – they hope – last a long time.

The process itself is a bit of a hybrid between choice and being arranged, particularly if an outside recruiter is used (though their incentives for a happy match aren’t anywhere near  as strong as two parents’).  But far too often we are making hiring decisions “for love” (i.e. we fall in love with the resume and the skills and accomplishments the candidate brings).  Ultimately, we are so overwhelmed by their stunning ‘good looks’ on paper that we overlook the fact that our values and goals are not well aligned.  As is typical the relationship starts well.  But over time, their differences are exposed which is why nearly half of all hires ‘fail’ within the first 18-months.

While everyone tries to get to the heart of a candidate’s values and personality, it ultimately devolves into a like-ability screen.  Can you imagine eating lunch or going for drinks after work with the candidate?  If so that’s great, but it makes for a good friend, not necessarily a great employee.

At RoundPegg, we encourage you to look beyond that attractive resume.  Just as the parents who select their children’s mate won’t pick someone repulsively unattractive, you’re not going to hire an idiot.  Odds are good that the person who has adequate skills but embodies the best of your culture will ultimately prove to be the far more successful partner.  Sometimes it just takes a little objectivity to see that.