DS Cohen & Associates
In today’s business world, one of the most frequently used words we find is “culture.” Too often, the speaker or author uses the word assuming the audience defines the word exactly as they do; we have found that this is most often not the case.
The disparity becomes clearly highlighted when you read someone espousing the perspective that strategy drives culture. The philosophy assumes that when the strategy changes, the culture changes. At several of my recent public presentations, I asked the audience to vote on whether they felt a shift in strategy would cause a change in the culture. The response, almost every time, is 50 – 50.
I am not taking a deep dive into this in this limited space in an attempt to resolve the existential question of which came first – the strategy or the culture. There are many diverse opinions about which comes first, culture or strategy, and which is more critical. In this article, I can’t possibly answer such a hotly and passionately debated question. My position is that culture is rooted in values, and the norms of behaviour are an expression of living the values. People’s values evolve and provide one a comfort zone in which to work.
My Perspective
My position is that culture derives from the norms of behaviours that the company members have learned, through trial and error, to be the behaviours that lead to being understood and successful. The source of the behaviours is born from a finite set of values put in place by the organization’s founders. These values will not change fundamentally; they will evolve very slowly over time. A change in the strategy does not change a person’s values nor how one acts within those values. Examples of a change in strategy will result in a focus on implementing a more mobile-friendly environment. Other strategic changes might be a shift to innovation, a new delivery system, a more agile, customer-focused approach, and the like. When I investigate the values systems of companies expressing a culture change, I find it predicated on a strategy change. Upon further review, I notice while the strategy has changed, the values remain untouched. If the values are not changing, it is logical the culture remains intact.
Another example is from last week’s masterclass I was teaching in Dubai. When we discussed the issue of strategy vs culture, one participant suggested that his organization is just introducing a new set of values. One of the values is innovation. After explaining the historical culture and the values that drive that culture, he suggested that he felt a dissonance when the ‘new’ values were introduced. But they were not actual values. He knew that the newly designed values were not changing anyone’s belief system. He also realized that the firm’s authentic values would complicate the implementation of a strategy of innovation. The value that had been part of the firm’s history was not celebrating learning from failure. There were already examples of managers and leaders who were uncomfortable with things if they did not work right the first time.
Values and Business Success Are Directly Related
From all the academic and anecdotal readings, my conclusion is that a values-based company outperforms other organizations. When a firm has a purpose and a predictable set of behaviours, the employees feel the confidence to take actions that are consistent and predictable. Living the values for employees results in a safe culture, and safety is reinforced when leaders act with predictability. When all decisions are made according to the values, there is an inherent trust established, within the organization, that the values are REAL. Here are a few considerations to better understand if your values are authentically derived and lived.
Respect and Trust: Respect is a multidimensional action. The goal must be that of employees’ feeling respect from their direct supervisor as well as from leadership; that all actions and decisions are in line with the authentic values. Respect must also be felt between peers and based on a shared understanding of what it means to live the values and act with purpose. The by-product of respect is trust. Respect and trust are the sources of why people leave managers or companies.- Walk the talk: The phrase is a throwback to management discussions from the mid-1980s but captures the essence of what employees expect. Employees will not do what you say if it isn’t aligned with the actions of the organizational leadership. When it comes to behaviours, employees will mirror the actions of the leaders. No matter how difficult it might be to live the value or make a values-based decision at the moment, leaders must always ask themselves – “is this decision consistent with our values?”
- Recognition: The concept of recognition is complicated. Recognition must not only be results-driven (outcome-based) but should see a recognition of the achievements aligned with the stated values. One recurring theme in why people leave companies is the lack of meaningful recognition when a person lives the values, especially under challenging circumstances; they feel invisible.
- Opportunities for Development: It is common for companies to define their High Potential (HiPo) people. Today, some companies are engaging in developing career paths for employees to self-actualize their development. Development opportunities, formal and in formal, are only a concern for those who wish to be developed. Frequently employees are not given a say if they want advancement or not. When development is ‘forced’ on the person, they may feel anxiety and undue pressure. But they ignore the PoPo person, the one who is “pissed off and passed over.”
- Responsiveness: When people feel the need for support, physical or psychological, leaders should anticipate and immediately respond. When the workplace is perceived as unsafe, leaders do not step in to address issues and often resort to blaming, excusing or hesitating; the response is not supportive.
- Support: Support can be a simple as ensuring each employee has the time and up-to-date resources needed to do their work. The goal is to establish a sense of mutual success among employees and between all levels.
These are the signs that lead your employees to believe they are not working in a safe place. An unsafe organization will result in employees leaving the organization, either by resigning or checking out emotionally:
- Leaders don’t live the values. Decisions are made without alignment with the values. Employees, suppliers or customers are not perceived as being treated in line with the values.
- A toxic workplace: Leaders make people anxious and always focus on the business results without a personal focus. When employees speak inside and outside the company, they express negative attitudes about the company and management.
- Unethical Behaviour: Leaders act in ways that violate the values and code of conduct; they know of employees who allow managers to work there even though they function in unethical practices.
- Inequity: There is a range of issues around fairness and equity. The inequalities can be regarding pay, perks, promotions, issues of gender, race, national origin, and a multitude of other things.
To check how you are doing based upon the employees’ perceptions, then, unfortunately, traditional engagement surveys will not provide the necessary insight. The questions on employee engagement do not address the issues of the actual employee experience. The employee experience is rooted in the perception of the employees if the values are authentic or aspirational. If aspirational, you will have a place of respect, trust, and passion.
Your say:
We are in the midst of a movement called “The Great Resignation”; people are leaving established jobs for various reasons. Considering the levels of respect, trust, recognition, and purpose, what issues make you consider leaving? If you did resign, where have you gone?
If you are investigating the differences between the employee experience and employee engagement, please reach out, and we will be happy to discuss. If you wish to audit your culture based on authentic values and understand the values that drive that culture, we would love to set up an exploratory conversation.
Please don’t hesitate to reach out if there is anything I can do to help.
