Decision Making

you say you want a revolution: three steps to changing culture

Company culture . Can’t escape hearing about it, but why is it important? Stripped of all buzzword mystique, culture is just “the way things are done” in the organization (or the team). It’s the personality of the company. Just like people, some are stiff and precise, some are loose and casual, and some are all over the board. We usually refer to the company, but culture also applies at the department or team level. Every group has its own feel or culture.

If the culture isn’t what you want, no problem. Changing the culture of a company, department, or even a team isn’t easy, but it is possible. It takes time, patience and persistence. There are three broad steps to reshaping the culture.

1. Decide what you want the culture to be. One way of thinking about culture is to consider it the default decisions and actions. When X event happens, we always take Y action. For example, “We have a culture of the highest integrity. When any dishonesty is discovered, we terminate the person immediately.” Or, “We are a customer service culture. When a customer wants to return an item, we always accept it, no questions asked, no hassle involved.”

So what do you want the culture of your team or company to be? What are the characteristics you would want anyone and everyone to use to describe the atmosphere?

Here’s the challenge: whether you consciously and deliberately choose a culture or not, there will be a culture. It will be whatever decisions and actions you support, reward, and tolerate.

2. Design processes and rewards to support that culture. If you’re trying to create a culture of high quality but the pay scale is based on volume, you will have a culture of volume – always. If you want a culture of simple, fast customer service but the processes are onerous, cumbersome, and unfathomable, you will continue to have a culture of complex and cumbersome customer service. If culture is the default way of acting, then the default way of acting IS the culture. Words won’t change it, only action. Different action = different culture. Same action = same culture.

3. Make selection decisions that support the culture. If you want a culture of outstanding customer service, don’t hire misanthropes. New hires should have the skills to do the job (duh!) but also the behaviors and inclinations that will allow them to both support and thrive in the culture you are creating. People who won’t support the desired behaviors/actions will be a continual drain on the culture. If they already exist in the team/company, they need to move along to a company with a culture better suited to them. NOTHING destroys attempts at shaping culture quicker than continuing to reward and employ people whose actions are in clear opposition to the intended culture.

For example, if you want a culture of integrity do not continue to employ people who clearly lack it just because, “they get results.” Doing so, only reinforces a culture of getting short term results by any means necessary.

There you go: know what you want to create, reward and support the necessary behaviors, and make selection (and de-selection) decisions that support what you want. Have patience and perseverance. It won’t change overnight, but it will change.

status quo?

“If you don’t change your beliefs, your life will be like this forever. Is that good news?” – Robert Anthony

 

Belief fuels action and habit, which creates a hard to break cycle. The more we do something, the more it becomes habit and the more of a habit it is, the more we do it. This penetrates every aspect of our lives.

Mr. Anthony refers to beliefs and it’s easy to think he is only talking about belief with a capital ‘B’: God, morality, religion, etc. That makes the power of his comment easy to miss. We have beliefs about every aspect of our lives. We choose our actions based on what we think will make us happy and successful (or at least happier or more successful than other choices), if only in the short run.

How often do we hear (or say), “I have to do it this way” or “Everyone does it like this” or “That’s just the right way to do it”? How often do we overjustify our actions without bothering to consider other possibilities (remember: we don’t want the best way, we want our way to be best)? How often do we use our beliefs to justify playing the victim?

We can try to make changes, but if we don’t change our beliefs, the changes will never stick. We’ll never, ever lose weight if we think we’re doomed to be fat. We’ll never get rich if we believe we were born to a loser’s life. We’ll never make good leadership decisions fueled by inaccurate beliefs. Too many times it’s been said:

  • “I can’t fire them, they are over 40.”
  • “I have no control over my employees’ motivation because I can’t give raises.”
  • “HR won’t let me fire them.”
  • “They’re doing a poor job, but I can’t fire them because I can’t have that position empty.”
  • “I spoke with them about that once, but it didn’t change so I’ve just learned to live with it.”
  • “I’m not a pleaser, I just don’t like people to be mad at me, but that’s ok, because no one does.”

Change the belief, change the action, change the result. Keep the belief, take the same action, get the same result. Your call.

the secret behind persuasion, change management, and talk radio political debates

People don’t want to discover the best solution. They want to believe their solution is best. And they are very threatened by data, evidence, or thoughts suggesting otherwise.

but does it work in your world?

We human types like to evaluate, compare, analyze, and decide in order to have the very best. This, by the way, is a good thing. Except when the data doesn’t reflect reality. After all, even most exacting logic fails us when a base assumption is incorrect.

Comparison tests for whatever you’re interested in are fun to read and give you a starting point when determining what’s “best”, but are not in any way an absolute indicator of “bestness” (no matter what the magazine wants you to think). A skilled rider on the worst motorcycle in a comparison would slaughter a mediocre rider on the best motorcycle. Every time. Ditto for bicycles, cars, etc. Engineering and manufacturing have gotten to the point where there are truly few lemons and magazines are forced to pick winners based on relatively irrelevant data.

Case in point for results not reflecting reality. In a recent comparison in a popular mountain bike magazine, five bikes were evaluated and a definitive rank order given. Except that, based on the comments, #3 would have leapt past #2 with different tires. Additionally, #4 was hurt by grips, seat, and other minor items. These were $3,000 bicycles and no one willing to drop that much cash on a bike is going to leave it stock. So 4th place (loser!) could be fixed for a relatively small amount by replacing or adding parts that are 1) relatively inexpensive; 2) often replaced anyway based on personal preferences; and 3) would still give the bike a total out-the-door price that’s less than 1st-3rd place. These results are meaningless! [Fourth place bike? Wouldn’t touch it. What? I can make it comparable to the top bikes and it still costs less – done!]

So what’s that mean in business? A few examples, though you can probably think of many more.

  • Personality assessments used in hiring are generally highly overvalued. Whereas they are very useful for development, they rarely provide much useful information for hiring. Sure there’re pretty graphs a and comparison ratings that make us feel like we are really comparing hard data. Just like with magazine comparisons though, they are pretty good at identifying the outliers to avoid, but just don’t give any definitive answers to compare normal folks. [This person is a “7” on sociability versus this other candidate’s “6.5”. But which can do the job better? How much sociability is required? How much is too much? What other personality traits would balance a low or high score? How do you know? How do you really know?”]
  • Turnover rates. We want those as low as possible right? Um, maybe. Some turnover is actually good. You obviously want to retain the high-performers, but do you really want the dead weight sticking around. Low turnover might be a sign of awe-inspiring leadership. Or maybe it’s a sign of a very weak leader not holding people accountable for performance.
  • Expenses – cut those down to the minimum. Well, that doesn’t work as a singular measure. Salary and benefits are a huge expense, but if we lay all the employees off no work will get done and no money will be made. Don’t want excessive inventory, but get rid of all inventory and it’s a little difficult to satisfy customers. Even looking at equipment: is the cheapest the least expensive? Probably not if we factor in maintenance and downtime costs. Same thing but back to employees: the cheapest employee may not be the least expensive when we factor in productivity and ease of managing.

Are any of these bad measures? Nope. It’s just crucial to remember that they aren’t definitive or absolute measures. They provide some, but not all, data. The risk is to draw too firm of conclusion from them, especially when they don’t capture real world use. Although all pieces are necessary to make the puzzle, you can’t make the puzzle from just one piece. The all time classic example of this is the “11 is one louder” scene from “This is Spinal Tap”.

Most decisions are not cut and dried. What works really well for someone else may not work for us at all. Everyone’s situation is different; their needs unique. “More” is not always better and “most” can be counterproductive. Rather we must balance out a number of factors to decide which option best fits our specific individual needs.