Can Corporate Culture be Changed?

Organizations seek out my assistance in helping them make their organizations better. “Better” might mean more effective leadership, higher performance, improved employee retention, effective compensation plans, improving team performance or simply creating a more cooperative, positive work environment.

After a thorough assessment of a client’s current operation and needs assessment, I am in a better position to present solutions that will address their gaps. Some of those solutions involve  policy changes, process changes, some involve personal coaching, and some involve proactive culture refinement — culture change.

When considering culture change, many senior leaders believe that corporate culture cannot be changed. I’m not surprised at this belief.  In my experience most senior leaders, throughout their entire careers have not lived through successful culture change. Even fewer have led successful culture change.

But here’s the question: Can you change how an organization performs?  Absolutely! By changing how individuals perform, leaders can change how the organization performs.

Leaders can change the way individuals perform by:

• Setting clear performance goals.
• Directing, supporting, coaching and delegating where needed.
• Measuring progress and accomplishment.
• Celebrating progress and accomplishment.

These activities, done consistently with a service approach often lead to increased employee performance which almost always affects service quality and commitment which leads to happier customers and growing profits. This is the service profit chain at work.

Changing your organization’s culture is no different from changing how your organization performs. It requires intentional definition of, communication of and accountability for your company’s:

• Purpose: The reason you are in business.
• Deliverables: Your committment to high-quality products and services.
• Culture: Values you stand for and live by daily with stakeholders, peers and customers.

Corporate culture is the most important driver of what happens in organizations, and senior leaders are the most important driver of their organization’s corporate culture.

To change an organization’s culture, leaders must change how they spend their time and what they communicate and reinforce on a daily basis. They have to change what they pay attention to.  Their focus shifts from great performance to great performance WITH great citizenship.

Creating a Culture of Smarter Thinking

Innovation has always been a business necessity.  How many times have you worked with individuals or teams that work really hard, but not always in the most effective way.  I am sure you heard the mantra “work smarter, not harder”.  Art Markma, a professor of psychology at the University of Texas and director of the Human Dimensions of Organizations program recently published a book “Smart Thinking”.  In the book he discusses several straightforward things leaders can do to help everyone in an organization think more effectively. The more you know about the way your mind works, the more that you can improve the thinking of the people around you. Here are some things you can do to get the ball rolling toward a smarter organization.

• Stamp out multitasking. This is one that has been debated quite a bit and we are all guilty of it,   virtually everyone today does some type of multitasking.  Markma says “The human mind simply isn’t designed to do more than one kind of complex thinking at a time”. When people are working on complex material, give them permission to ignore the phone, shut off the e-mail and shut down instant messaging. When you bring everyone together for a big meeting, get them to “be here now.” Ban smartphones and Internet browsing during meetings.
• Encourage openness. You never know where the next good idea is going to come from. So encourage people to try on new ideas for size before deciding whether to pursue them. Too often, people assume that the fiercest critic in the room is the one who looks smartest. But if you criticize before deeply understanding an idea, you won’t be able to use that knowledge later when you need it. Set an example by focusing first on the positive parts of a new proposal before finding potential flaws.
• The company succeeds when “we” succeed. Our culture is one that prizes individualism. Ultimately, we reward people who make important contributions. Credit and publicity tend to go to particular individuals who make important contributions. History rewards great people, but rarely great groups. But an organization cannot succeed without a group contributing deeply to that success. Lead by promoting the value of group success and reward groups for their achievement. In the long run, that provides everyone with the incentive to learn and grow.
• Create desirable difficulties. We use technology to make things easier for us. And, of course, there are lots of things that ought to be easy. It is wonderful that we can send documents across the globe in seconds and that we can get research papers with the click of a link. But technology cannot make learning easier. Gaining true understanding of complex situations requires effort. Don’t just provide summaries of key concepts to group members. If there is something that people need to understand, encourage everyone to dig in and work on it.
• Support smart habits. There is a lot that we do mindlessly each day. We don’t have to think about where the light switch is in our office or how to find the gas and brake pedals in the car. Those habits are smart, because they allow us to focus our mental energy on more important matters. Similarly, don’t disrupt the habits of people in your organization without careful planning. Open workspaces, for example, don’t allow people to develop habits for where their desk supplies are and can cause disruption. Changes in internal websites and forms cause people to think about tasks that should be mindless. And remember change for the sake of change costs more time and mental effort than it is worth.

This book provides simple yet valuable advice that can be applicable to anyone and any situation. I would recommend it to anyone with a curiosity and desire for living a smarter and more efficient life.

Mutual Agreement

Negotiation is a fact of life. Everyone negotiates something every day. At work we negotiate about schedules, budgets, task allocation, you name it.

One thing is clear: certain people will shy away from negotiating because they fear the confrontation.  One way to minimize the whole confrontation thing is to establish a tone for a mutually worthwhile conversation

Think about using questions like:

1. “What would you like to see as one of the outcomes today?”
2. “What else can I tell you about my situation?”
3. “What else can you tell me about your ideas so that I can better understand your perspective?”
4. “What do you need from me that would be helpful?”

You get the idea.

You’ll know you’ve reached the most cooperative agreement when everyone at the table says, “This is the best decision possible given all the facts we have.” Emotionally, no one will feel worse off than before, and may have even greater respect for each than before.

The biggest possible payoff: A result that offers bigger benefits than anyone originally thought possible.

Any method of negotiation should be judged by three criteria:
Should produce wise agreement if agreement is possible;
Should be efficient;
Should improve or at least not damage the relationship between the parties.

Distorted Performance Expectations

I spent the greater part of my day with leaders who are sometimes baffled by a performance issues. In many of these cases it is the result of The Halo
Effect.  The Halo Effect happens when someone possesses an outstanding characteristic or skill set and we allow our positive judgment of that single characteristic to influence our total judgment of that person.   So we end up evaluating that person exceedingly high on many traits because we are so magnetized by his or her performance in one trait. For example, if a person is very persuasive during one-on-one discussions, we may presume a host of related attributes: great presentation skills, potential sales star, group spokesperson. . .Do I feel a promotion happening here.

The effect is worth noting because it can wreak havoc with management. Supervisors responsible for employee appraisals can let the strong rating of
one critical area influence the ratings for all of the other factors tied into the halo effect.   Many times individuals are prematurely promoted or given roles they won’t be effective in.  Managers wonder why the individual isn’t performing the way they anticipated.  In fact they may be…just not in the areas mistakenly attributed.

There is an opposite effect that is equally insidious known as the “Horn Effect” (think of a little cartoon devil with horns). It works the same way. If a person seems particularly lacking in one key trait, that person will  often be labeled as deficient in other related traits as well. One simple example: If one is frequently late for work (even though there may be important extenuating circumstances known to the company), the word around the office is that (s)he is “not committed” or even “negligent” regarding work tasks.

What To Do:
Recognize the reality of each of these effects and how easy it is to be lured into their respective auras. When you start wondering why Phil in Accounting, who
graduated Phi Beta Kappa, is terrific at crunching numbers but fumbles at explaining their meaning and application, put on your Discernment hat. Break
down the elements of the job and begin to assess, based on observable, verifiable performance, what he does well and where he struggles. The first job
of a leader is to accurately assess reality. The sooner a manager can discern the high-medium-low performance areas, the sooner that person’s talents can be
used effectively and a developmental plan put into place.

How to Spot an Eagle

Aardvarks are really good at one thing: eating bugs — sometimes 50,000 in one night! No other creature on the planet can match their appetites. Star performers in their own corner of the
jungle, when they tuck a napkin under their aardvark chins, they produce impressive results, just like your hardworking employees can in their jobs.

Too often, however, in an attempt to do the aardvark and the organization a favor, a decision maker will insist the aardvark fly like an eagle. There are no flying aardvarks. You can certainly
throw an aardvark out of an airplane midair, but you won’t end up with a flying aardvark. Being destroyed doesn’t motivate your employees, not the one who just failed or those who witnessed the crash.

So how do you know the difference between an aardvark and an eagle? How can you recognize those who can and will engage in the critical but difficult work of creating strategy? Whether making a hiring or promotion decision, based on the individual’s proven record of success, ask yourself the following:

• Does this person understand how to separate strategy from tactics, the “what” from the “how”?

• Can this person keep a global perspective? Or does she or he become mired in the details and tactics?

• Do obstacles stop this person?

• Can he or she create order during chaos?

• Does this person have the ability to see patterns, make logical connections, resolve contradictions and anticipate consequences?

• What success has this person had with multitasking?

• Can this person think on his or her feet?

• Can this person prioritize seemingly conflicting goals — to zero in on the critical few and put aside the trivial many when allocating time and resources?

• When facing a complicated or unfamiliar problem, can this individual get to the core of the issue and immediately begin to formulate possible solutions?

• Is this person future-oriented and able to paint credible pictures of possibilities and likelihoods?

• How do unexpected and unpleasant changes affect this person’s performance?

• When in a position of leadership, does this person serve as a source of advice and wisdom?

The core competencies that drive a particular organization may differ, but the ability to think analytically and dispassionately remains constant. The overarching question is this: “When
acting in a strategic role, has this person typically performed as needed?” If the answer is “yes,” the person probably has the innate talent to be a strategic thinker and will just need to improve requisite skills to support the talent. If the answer is “no,” don’t gamble by putting this person in a more demanding position. As valuable as the aardvarks of the organization can be, virtually all organizations need more eagles, strong critical thinkers who can learn from mistakes and make bold decisions.

Criticism and Perception

The very first performance review I received was based on a typical 1 to 5 scale with 5 being “exceed expectations”.  I was working in a hospital and the system was pretty straight forward, you worked hard and mastered your tasks and you were almost always going to get a 4.  The general perception was if you received anything less than a 4 you probably weren’t very good.  Well, I aimed for a 5, so I learned everything there was to learn about my job, suggested some improvements and if I was on duty my department always got high marks.  So, I was not surprised that I received 4 and 5’s in each category.   It pretty much went the same way for several years.  That is until my first management role, where I reported to the CEO.  She and I got along great.  My strength was people and hers was finance and negotiations, she was former CFO.  Before my review we really never sat down to discuss expectations, I just did what I had to do to support her, the company and the other senior leaders.  During our first review she was very positive about my overall performance but when she got to the finance/accounting area she gave me a 3.  She told me I was doing great with monitoring our finances and maintaining a decent size budget, but I needed to strengthen my overall knowledge of the financial accounting side of the business.  She further explained that this would really provide me with a stronger foundation in my future career opportunities.  To me, at that time, like many employees, considered a 3 to be average (but that’s a different subject) at best and it really surprised me.  I became defensive and probably stopped listening at that point trying to figure out why she gave me a 3.    My mind quickly went to the fact that she was a financial nerd and expected perfection. 

But as I think back to that review, she really taught me a great lesson.  She cared enough to step out of the norm and tell me where I needed to improve, and I did.  Had she not been willing to tell me the truth, I would have never focused in the finance and accounting area since it is not exactly the enjoyable part of my job.  But I had to be knowledgeable in all areas of business if I was going to continue to grow and expand in my career.

Any criticism can be hard to accept. But surprise feedback — criticism that seems to come without warning is the hardest. We’re far more likely to be defensive.   About the only thing I would have suggested to her today would be to have discussed her expectations with me before that meeting and provide me with information about those weak areas so when that review time came, I wouldn’t be surprised.

The other strong lesson I learned is to prepare your employees on your methodology as it relates performance reviews.  If you don’t give high marks, unless someone walks on water, tell them ahead of time how you will be rating them.  Everyone seems to take criticism better, when it doesn’t come as a complete surprise.

So as you listen to criticism and your adrenaline starts to flow, pause, take a deep breath, and:

Look beyond your feelings. Look beyond their delivery. Feedback is hard to give, and the person offering criticism may not be skilled at doing it well. Even if the feedback is delivered poorly, it doesn’t mean it’s not valuable and insightful. Not everything will be communicated in “I” statements, focused on behaviors, and shared with compassion. Avoid confusing the package with the message.

Don’t agree or disagree. Just collect the data. If you let go of the need to respond, you’ll reduce your defensiveness and give yourself space to really listen. Criticism is useful information about how someone else perceives you. Make sure you fully get it.

Later, with some distance, decide what you want to do. Data rarely forces action, it merely informs it. Recognizing that the decision, and power, to change is up to you will help you stay open.

Don’t compare employees

We work with adults, well I know it doesn’t seem like that all the time and it doesn’t matter what position you hold.  But one mistake I see managers make is comparing one employee to another, like teachers may have compared you and your sibling when you were younger. 

It goes like this “When Amy was in your job, she always contacted the sales managers to get the monthly updates.  I think that was a better way than how it’s being done now.”  These kinds of remarks don’t prompt positive changes or win over employees.  If it truly worked more effectively when Amy did it, then why wasn’t this employee trained the same way. OK that’s too easy.  But you can say something like “How do you think we can get the sales managers to provide us with the monthly updates more effectively.  At one point we called them to get the updates, but I am open to whatever process you develop to get it done.”  This method still addresses the way it worked but allows the new employee to look at other options, while understanding this is important to accomplish.

So the next time you get that feeling to compare one person’s work with another, simply stop and think about one or more of these:

1. Compare performance and behavior against the goal or expectation
2. Compare performance against the standards set to earn a bonus or reward
3. Compare performance against some desired goal that your employee has expressed

Not just once a year – Performance Coaching

A critical part of the manager/employee relationship is open communication between the two.  What is  expected from the employee and how well are they accomplishing their responsibilities.  How should they expect you to lead them. Most Companies have a formal Performance Management Program used to evaluate performance on an annual basis, but informal, on-going performance coaching is critically important.  Reviewing performance should not just be an annual event, but rather a continuous cycle.

More specifically, performance management:

• is a shared responsibility between you and each individual who reports to you; some of us forget this
• provides mutual understanding between the manager and employee regarding what is expected of the employee and how well the employee is meeting those performance standards;  Employees can’t meet expectations, if they don’t know what they are.
• empowers the employee to perform a variety of tasks, and face new challenges for growth;
• sets and monitors progress against clear goals;
• includes regular documentation of performance;
• includes timely feedback on performance between the manager and employee;
• includes discussion on professional development;
• recognizes hard work and success; not just areas for improvement!

An effective performance management program provides many benefits to the organization and to its managers and employees.  Good performance management results in:

• focused movement towards organizational goals;
• informed employees;
• more successful and productive employees;
• more meaningful work for employees;
• better working relationships between managers and employees;  Mutual respect
• increased communication;
• legally defensible management decisions;
• all around better quality of interaction.

Remember regular communication and feedback doesn’t need to be complicated or a long process, it just needs to be regular. Some simple steps and commitment is all you really need.

HR – Are you the Management Advisor or the Surrogate Manager?

A friend of mine who is the head HR for a multi-location 3,000+ employee company gave me some feedback on my July 14th blog concerning the power of knowledge as it relates to the Human Resources profession. She (I’ll call her Angie) explained how frustrated she felt as she read it. She described her day as having been particularly hectic and, at the end of the day sought out my blog for some inspiration and motivation, but that instead it frustrated her. As she read it, she couldn’t help thinking how hard it can be to even get to ‘the table’ much less find a seat, when you are consumed with extinguishing the fires created largely by those who are at the table. Having been there myself, I could certainly empathize with her. Too often HR serves as the surrogate manager – acting on behalf of the manager when the heat is on to make a tough, risky decision. There are lots of reasons this happens and occasionally they are legitimate. However, for the most part, HR acts for the manager because we think it will take too much time to teach and guide the manager through owning the resolution. Our intentions are always good – we usually move in to protect the company against a potentially serious and costly mistake. No doubt, our actions are driven in part by self-preservation, since HR will likely have to face bigger problems arising from a manager’s failure to completely and properly resolve the problem. Inevitably, however, doing the manager’s ‘dirty work’ simply results in HR doing more and more dirty work, while managers lose an important opportunity to grow and learn. And, of course, there’s that seat at the table….yours..the one that goes unfilled while you do someone else’s job. Angie’s company is growing rapidly – an enviable problem to have in this tough economic climate. The company has hired or promoted several new managers and directors. Angie has quickly gained the respect of her colleagues by her responsiveness and skill in dealing with tough issues quickly and effectively. However, some of her peers have begun to forfeit their management responsibility and by sending their employees directly to Angie when problems arise rather than dealing with the problems either directly or seeking out Angie’s advice on how to deal with the problem. When this cycle begins it’s usually not a big deal. In fact, if we’re honest with ourselves, sometimes it’s even flattering. But, with several new managers, limited training and a rapid rate of change and growth, it can quickly become a bad habit – one which we helped create and which we also must break. I suggested to Angie that she meet with her colleagues, explain her role and encourage them to tap into her expertise (knowledge) to help them increase their effectiveness as leaders. Importantly, she must also convince them that neither her value to the company nor their future growth potential is well served by her acting in their place. Rather, is her knowledge and ability to be a strong support partner combined with their courage in stepping up to the plate during tough times that will yield the greatest return for the company – and for their careers. So, if you find yourself frustrated and distressed at being left behind to do the manager’s job, ask yourself how much of the issue you are responsible for creating, and what can you do to change it? You’ve got the knowledge, and therefore the power to turn this situation around – and empower the managers to learn and grow.

I would love to hear from HR leaders who successfully turned this situation around in their organization.

HR Integrate vs. Administrate

Back in January Charlie Judy, HRFishbowl, asked for posts for his blog, HR Trench entitled Integrate vs. Administrate.

Well I didn’t have my Blog back then, but was so impressed with the response provided by Steve Browne, Executive Director of Human Resources for LaRosa’s Pizza that I saved it.  I reviewed it again yesterday and still think Steve hits the nail on the head when differentiating being happy in your HR role or Not.

Steve wrote:  I know too many HR folks who are miserable in what they do as a profession.

In looking at this, I had to ask myself the question – “Why are they miserable and I’m not ??”

The answer was pretty clear only because of how I have been encouraged and “allowed” to perform at my Company.  About a year ago, my boss, the COO, asked me to draw a picture of what HR should be at our company.  I honestly was a little baffled because he literally wanted a picture of what I’d like HR to be.  After some deep reflection, and many cups of coffee, I came up with a picture and went back to present it to him.

I followed the “before and after” model that you see in those weight loss commercials because I wanted to express how HR was being utilized now and what it should be.  The “before” model showed every department as silos – including HR.  HR was only used if, and when, people needed it primarily for administrative tasks or employee relations problems that were now teetering on legal action.  In contrast, the “after” model took HR and spread it in a row that spanned all of the departments.  I explained that HR should be integrated throughout all departments and levels of the company because all of them have humans!!

Seems simple, but it worked.  He agreed that HR should be integrated vs. administrative.  Strategic on a regular basis vs. processing paperwork.

This frees me every day knowing that HR is expected to be integrated to move the Company forward.  I wish HR professionals everywhere would follow an “integrated” approach!!  If they did, they would see that the “trench” that we’re in is actually very cool and exciting!!

Thanks guy’s for reminding us we are in a great profession full of so much potential.

LaRosa’s has been in business for over 50 years, and has 63 locations in the Ohio, Kentucky, and Indiana region.  Steve has the daunting task of building and maintaining an environment and career experience that keeps LaRosa’s employees engaged in this highly competitive multi-location business.  You can follow Steve on Twitter and follow Charlie Judy on http://www.HRfishbowl.com.