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A Pragmatist’s Guide to Corporate Culture

The short answer

I’ve also wondered how we know that fish don’t know – but that’s a discussion for another time.

Close-up of bicycle gears

I’ve had a number of friends and colleagues over the years that will either roll their eyes and/or disengage when someone brings up the subject of ‘corporate culture’. For some, the discussion is too existential to be practical and others feel that the levers that produce culture are vague and elusive.

I’ve had the privilege of being in a role in where I could embrace and promote a great culture in two separate companies. I understand the perspective that culture can be hard to define and how similar it is to the fish who doesn’t know he is wet. I’ve also wondered how we know that fish don’t know – but that’s a discussion for another time.

Last week, I had the privilege of visiting a vendor we are considering partnering with. I work for a relatively small carrier and we don’t have some big multi-million dollar deal on the table. We are just looking for a partner. However, during the course of this visit, I met the founder/CEO and he made a comment that I think crystalizes what it means to create a culture. What I remember he said when I asked him about their culture was ‘we don’t have statements on the back of our badges, we organize around three priorities: customers, employees, and shareholders – in that order’.

What I find fascinating is the fact that if he hadn’t told me, I would have been able to figure it out based on my interactions with the people I met in his organization. Consider the output:

-      They flew in their COO from Canada and he and the CEO took time to meet us and sit in on our meetings. (Customer)

-      They flew in their TAC manager from TX to speak with us about support (Customer)

-      Product managers from each of the primary groups took several hours to walk us through their products. (Customer)

-      The product pricing decisions they have made in the face of rising tariff costs are in favor of the customer (Customer)

-      The software licensing and support pricing mechanisms are fair and easy to understand (Customer)

-      TAC cases that violate SLAs are discussed every week at a Sr. Leadership team level (Customer)

-      Every employee I met was proud to work there (Employee)

-      They attract and retain top talent (Employee)

-      The earnings call happened the morning we arrived, and although they are healthy financially – the call didn’t go as well this quarter.  A part of the reason for their profitability hit was related to the tariff-related charges of $4M in the first half of 2019. (Customer then Shareholder)

So, you may ask, what is the point of my hashing through my experience on this trip? Just this – that culture can be really simple. It can be as simple as organizing all of your decisions around a shortlist of priorities. You hire competent people that naturally resonate with your priorities, coach and then ultimately fire folks that stop resonating. You simplify decisions about where you spend time and money, sales compensation plans, even which manufacturing partners to choose. You hold this expectation for leadership and for each of your reports.

Think with me about the pragmatic benefits of this clarity:

·     Reduce the role of corporate politics in decision making - quantifiable and mutually agreed upon goals

·     Simplify the value proposition for each employee – ‘you win here if you move these priorities forward in this order.’

·     Highlight and eliminate the ‘jackass’ behavior that’s killing your team dynamic – ‘it seems like everyone around this table is focused on the customer except you.’

·     Attract and retain the right kind of talent – Competent people want to do their best and make a difference by doing the things that matter to them. When your priorities resonate and they feel like they can ‘win’, they will come to work for you and stick around.

I mentioned that I’ve been fortunate enough to embrace and promote a great culture in two different companies.  I’d maintain that everyone who takes a paycheck has a similar privilege and responsibility. Each of us has the ability to gain clarity about what really matters in our organization and simplify the focus and expectations for ourselves and our teams. Are you looking for a great company to work for? We’re hiring. Are you dissatisfied with your corporate culture? Maybe the problem can be found in the bathroom mirror.

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