Progressive Distributor

How to build a culture of success

by Jerry Haney

Every organization needs effective cultural leadership. What is this thing called culture? It is the glue that holds together all of our values, our beliefs, our sense of self, and our confidence and trust in the people around us.

Culture touches every aspect of an organization, from the structure, to the people who work for, buy from, and sell to it. In order to thrive, or even survive, in today’s global economy, organizations have to cultivate a strong and adaptive culture that thrives on change, inspires loyalty among customers, and nurtures pride among associates.

When we believe in our culture, we are motivated to protect it against all odds. In contrast, if we don’t believe in our culture, we will hardly lift a finger to help it survive.

Whether it’s put in place by plan or neglect, culture always exists. And it plays a key role in the purpose, performance and effectiveness of an organization.

Effective cultural leaders have the ability to do the following:
1) Consistently produce outstanding bottom-line results
2) Attract, motivate and retain top talent
3) Appropriately adapt to changing conditions

Mature, effective cultural leaders understand the critical elements of high-performance organizations. Regardless of the setbacks they encounter, these leaders strive to ensure these critical elements are continually being developed within their areas of responsibility.

As long as an organization has a viable product in a market that is itself viable, there is no credible excuse for not building an improved workplace culture, regardless of how tough things are today. 

Too many leaders are waiting for their bosses to fix everybody’s culture.  Every leader, at every level, has more than enough resources and plenty of latitude to dramatically improve their own organization’s culture. It’s a matter of knowing how and assuming your inherent responsibility for cultural leadership.

My book “Making Culture Pay: Solving the Puzzle of Organizational Effectiveness,” explains that the highest performing companies share a dedication to these six critical elements of culture:

• Core Values - The foundation of the organization, values reflect the basic principles that guide our interactions with internal and external stakeholders.

• Products and Services - Insuring that products fit present and future customer needs, wants and values.

• Direction - The clear and focused path that provides direction to the organization and every stakeholder.

• Structure - Insuring that the organization has the capacity and the appropriate operating and cultural processes to work effectively.

• Measurements - The means of providing timely feedback on personal and organizational goals.

• Rewards - The recognition of associates for reaching specific goals and exhibiting desired behaviors.

Many organizations seem to have a great strategy and even great products, but they are unable to capitalize on their potential in terms of bottom-line results as well as their competitors do. Often, this inability to turn potential into sustained profitability results from productivity problems that reach down into the subcultures of the enterprise, its divisions and departments.

But, this doesn’t have to be an organization’s fate. 

Success means taking advantage of technology and expanding knowledge at the cutting edge of any industry. And, it means adroitly changing your products and services to match the shifting needs of your customers, both inside and outside the organization.

The best cultures involve strong cultural leadership at every level of the organization. But a great culture doesn’t just happen. It is built through conscious decision-making by leaders who truly understand cultural leadership.

To understand how these six cultural elements relate to each other, you have to picture a Rubik’s cube puzzle. My firm, Visionomics Inc., created its own version of the Rubik’s cube, where the center is a stakeholder of the organization, surrounded by the six elements. No matter how many times the outer cubes (cultural elements) are moved into different positions, they always interact with the stakeholder, helping to influence his or her beliefs about the organizational culture.

The benefits of paying attention to these cultural elements are clear. Companies with strong, adaptive cultures not only produce outstanding bottom-line results, but also they are able to attract, motivate and retain top talent. In addition, these organizations readily adapt to changing conditions.

Look at Southwest Airlines, one of the few airlines not laying off employees in the wake of the World Trade Center attack on Sept. 11, 2001. Known for its adaptive and encouraging culture, the airline has been a model for other organizations seeking to change their fortunes.

Unfortunately, many managers believe that only top executives are responsible for developing organizational culture. Yet, in many companies, divisional and departmental managers are cultural leaders and take responsibility for growing the kind of culture that makes their division stand out. As long as the organization is viable, these department heads have all the resources necessary to improve their workplace.

Jerry Haney is founder and chairman of Visionomics Inc., a consulting and training firm that helps enterprise leaders maximize their work cultures. For more information about Haney or his book, e-mail info@visionomics.com

This article originally appeared in the ISCON 2005 Convention Issue of Progressive Distributor. Copyright 2005.

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