by Sheila Margolis on August 7, 2010
Organizational culture is an important thing. It’s the standards guiding all behavior in the organization–leaders and employees alike. So when you have a culture of uncompromising integrity, respect, and trust and your top leader–the CEO–demonstrates behaviors that are in conflict with those core values, what do you do? The answer is simple if your culture matters. The CEO must leave. And that’s what happened at H-P.
If you read the H-P Way, a key tenet of the culture is: “We conduct our business with uncompromising integrity.” It is explained this way:
We expect HP people to be open and honest in their dealings to earn the trust and loyalty of others. People at every level are expected to adhere to the highest standards of business ethics and must understand that anything less is unacceptable. As a practical matter, ethical conduct cannot be assured by written HP policies and codes; it must be an integral part of the organization, a deeply ingrained tradition that is passed from one generation of employees to another.
In the Five Ps model, the P of “Projections” refers to the images that an organization projects to the public and to the employees, as well. Those images are often influenced by marketing, PR and advertising, but they are also influenced by things like the company name, its logo and symbols, and even the image of the headquarters, offices and stores, and the company’s leader. These images must be aligned with the culture of the organization. Lack of alignment produces serious problems for the company–the public and the employees no longer believe those espoused values matter. How can the leader of a set of values not practice the values that he says are most important?
Leadership matters when it comes to organizational strategy and leadership matters when it comes to organizational culture. When the leader lives the values and talks about them each day, then everyone inside and outside the organization believes they are real. And that’s what it takes for a strong culture–a vital asset for any organization.
And when that leader no longer represents those core values, for the sake of the health of the organization, the leader must leave. Of course, selecting the next leader becomes a challenge, especially when the organization has had a history of selection issues as the WSJ labels as the H-P Curse.
An insider is usually the better choice if you seek to sustain the distinctive and enduring Philosophy of the organization–a vital part of the Core Culture. Insiders usually get it because they’ve been living it–assuming the culture is aligned and practiced. Outsiders need to be selected based on whether they have demonstrated leadership practices that are consistent with the company’s culture. The wrong selection can damage a culture.
Culture matters and leadership matters. They go hand-in-hand.
by Sheila Margolis on July 20, 2010
According to the WSJ, Nokia is searching for a new CEO to revive an organization that sells lots of cell phones but has been unable to compete in the high-end smartphone market. The WSJ says, “The company’s failure to get back in the race has taken a toll.” Selling in the mainly lower-end market limits profit margins. So what does the company do to push change…they search for a new CEO.
Leadership is a prime driver of change, and top leadership is the primary influencer of an organization’s culture. Thus, several things must be decided before looking for a new leader.
- First, decide what is working with the culture and what needs to be changed. Is a new strategy with corresponding values what leadership must advocate or is the problem deeper? A clear assessment of the Core Culture and particularly the Purpose and distinctive and enduring Philosophy of Nokia must be assessed. What are they and can the organization survive sustaining that Purpose and those distinctive organizing principles that are the character of the company. Is a character change needed or a strategy change? Hopefully, it’s just a strategy change because the former requires a much more complex process of transformation.
- Next, if the change is just a strategy change, be sure the new leader personally advocates and believes in the Purpose and Philosophy. If that leader sees the organization in a new way, changes may be made that were not intended.
Selecting new leadership is a delicate process. But first understand what must be sustained and what needs to alter. Then, choose the leader that will take the organization in the right direction rather than destroying those attributes that matter most to employees and the customers who identify with it.
by Sheila Margolis on July 20, 2010
Sage is a global software business, but with so many acquisitions, it has lacked a united culture. As Mary Welch reports in the July 18th issue of the Atlanta Journal Constitution, the company “is redefining itself as an entity greater than its parts.”
To retain the success of acquisitions, organizations tend to leave them alone for awhile to avoid disrupting their productive operations. But now for Sage, building a global brand will require some disruption in order to build a united culture. There are real benefits to collaborating across acquisitions and business units. A company often starts with a re-branding effort to jump start the process, but that’s just an image adjustment. Real synergies and prosperity will only be derived from an internal process of building a united culture.
Including the people of all acquisitions–the entire organization–in defining the Sage culture that all will share may be the formula for uniting employees and making the brand a seamless and customer-focused solution for those they seek to serve. The process of building a united culture is much more than a re-branding effort. It is an internal process to define, shape and manage organizational culture. By building this shared foundation, a united effort can be realized.
by Sheila Margolis on June 15, 2010
Everyone’s looking for the recipe for employee engagement. How do you get motivated workers? To start, think about the six components to Employee Engagement listed below:
1. FIT
Is the employee a FIT with the organization–its culture? Is the purpose of the organization meaningful to the employee? Are the values of the organization in harmony with the employee’s values?
Is the employee a FIT with the job? Does the employee feel one’s work is significant and is the best use of one’s abilities?
2. TRUST
Do you have a trusting workplace where people feel their leaders have integrity–they’re honest and fair? Do employees respect their leaders?
3. CARING
Does work feel like family? Is collaboration/teamwork encouraged? Do employees have friends at work?
4. COMMUNICATION
Do you have ongoing, open, two-way communication? Do employees feel like leaders/managers listen to them? Is information freely shared?
5. DEVELOPMENT
Does the organization support individual development? Do employees have challenging assignments? Does the workplace encourage achievement and mastery?
6. OWNERSHIP
Do employees have autonomy? Do they feel involved? Do they participate in decision making? Is work flexible?
When employee’s human needs are met, they are more engaged.
by Sheila Margolis on May 26, 2010
Is your performance management system damaging employee performance? Do some managers put off their annual appraisal meetings because they dread the process as much as the employee? If that’s the case, let’s review a few of the basics of performance management to guide you in the process.
- Employees must participate in the creation of their performance expectations. If employees do not help create the standards by which they are judged, they will not feel ownership of those standards. And ownership produces the commitment and drive you need for organizational success. These performance expectations become the “how” and the “what” to guide the employee.
- Performance expectations should include desired behaviors linked to the culture of the organization. These behaviors are the actions the individual must do that align with the culture of the organization. Each employee must live the core culture principles each day in a variety of ways. These standards are not limited to a particular job; instead, they are across-the-board standards that everyone must adhere to and thus ensure that the culture is expressed continuously. For example, if your organization is all about “attention to detail,” then each employee is guided by that standard.
- Performance expectations should include desired behaviors linked to the job. With each job, there may be unique behaviors that are required. These behaviors must be incorporated in the standards for the employee.
- Performance expectations should include expected outcomes. Employees must have defined outcomes to achieve that link to the organization’s goals. These individual goals give the employee a big picture view of the organization’s strategy. By understanding the individual outcomes that will contribute to the organization’s goals, each employee can be a key player in moving the organization toward success.
- Ongoing feedback is the key to improved performance. Highly engaged employees get daily, weekly, or monthly feedback–not just an annual performance review. But there’s one problem with feedback: it’s not so easy to do it right. That’s why so many managers avoid it. Feedback must be timely–provided as close as possible to the occurrence of the behavior. That’s a feature that annual reviews can’t offer. Feedback must also be specific–it must describe the behavior in exact terms. Feedback must be genuine–using personal pronouns such as “I.” And feedback must be given in a supportive and positive environment. Feedback can be an informal, ongoing exchange.
- The performance review session offers an opportunity to plan for the employee’s development. An employee’s performance–in relation to the behavioral standards and expected outcomes–offers a good opportunity to discuss development needs. Use the performance review as a time to identify areas for development and a plan for obtaining that development.
- Does the employee get a score? This is a key question to answer because “the score” is what contributes to the threatening nature of the process. The score is what can make employees get defensive. The score is what causes discussion to be distracted from the real intent of the process–to improve performance. If your purpose is to have a rating to guide pay, rewards, and reduction in force, then you will need a number. But be clear: the process then becomes less of a development tool. Some organizations have pay and promotion discussions as a separate activity. That allows the review to be solely a development tool and more open discussion usually occurs when there is less concern that pay will be impacted.
- Managers must be trained in the performance management process. Giving feedback and consistently using the scales for measuring one’s performance are essential skills. Don’t assume all managers have a consistent understanding of the standards and the scales used or the necessary skills for giving effective feedback. Discussion and training are often required for the process to be effective and to do what it’s designed to do–improve performance.
by Sheila Margolis on May 26, 2010
Are you thinking about doing more cost-cutting? If so, stop for a moment if you are considering an across-the-board reduction in spending. Instead, manage smarter by first considering two key questions:
- What can your organization be the best at?
- What capabilities enable you to be best-in-class?
The answers to these two questions will be the guide in how you move forward. The challenge is to allocate resources to enhance the capabilities that make you best-in-class and not get distracted by spending time, energy, and money in developing capabilities that really don’t contribute to your distinction. Once you have defined what the organization can do “the best,” be sure everyone in the organization has that shared view. Then, each day, employees will focus on enhancing the organization’s critical capabilities.
Read an interesting article, “The Coherence Premium” in the Harvard Business Review, June 2010 issue. Paul Leinwand and Cesare Mainardi provide an excellent discussion of these principles. As the authors state, “Sustainable, superior returns accrue to companies that focus on what they do best.”
Success can be achieved by aligning your core culture–guiding the “why” and the “how” of the organization–with your distinctive internal capabilities that make you best-in-class, and the right market position.
by Sheila Margolis on February 21, 2010
In the New York Times article, We’re Family, So We Can Disagree, Ursula Burns, chief executive of Xerox, is described as the new chief trying to “redefine” the Xerox culture. Often the process is more simply described as defining the culture, because in the process of defining it, a new culture–or a variation on the past culture–can emerge. Of course, completely throwing out the old is not typically advisable unless the company is struggling for survival.
So how does this defining process work? First, it must be a collective process–everyone must participate–to some degree–to produce a feeling of ownership. Through interviews, focus groups, and/or open-ended surveys with the leadership team and other key members, questions must be answered that will unveil why the organization exists, its distinctive and enduring principles, and the strategic priorities that will move the organization forward toward success. Then, with an understanding of the options generated from the initial data gathering, all organizational members participate in giving their views through a survey. Next, the leadership team reviews the survey results and conducts a reflective dialogue of options. The outcome is the creation of a core culture that everyone helped produce.
This process may take a few months, but at its conclusion, Xerox would have a clear picture of who the organization is–its identity–and what it will take to compete and thrive. And this “new” or adjusted culture will be clearly defined so that it can be shared.
So now is the time for Xerox to take a moment to reflect as a community–as a family–in capturing these valued core principles. Because the defined organization core culture will become the guiding light to direct all in the organization.
by Sheila Margolis on January 26, 2010
Is quality an issue with Toyota? A sticking accelerator pedal? Not good–and a long list of models could be affected. Toyota is shutting down production lines. This is a big deal for Toyota and the many drivers of those vehicles.
Is Toyota communicating this recall effectively? The recall has been reported on the national news channels and on the Toyota website–with a bright red news alert. They’ve published on their website “Frequently Asked Questions for the Sticking Accelerator Pedal Recall.” Is this enough?
With so many product recalls, are Americans getting the recall information they need to stay safe? What could improve this? What is the best way to spread this information?
by Sheila Margolis on January 26, 2010
Prosper Using the “Why,” the “How,” and the “What”
How would you describe the people in your organization?
- Do employees genuinely care about the organization? Do they feel a connection to its contribution and its unique character?
- Do valued employees want to continue working there? Do they identify with the organization? Do they feel invested in its future?
- Do employees regularly put forth extra effort to help the company succeed? Are they adaptive? Focused? Persistent in their efforts? Are they willing to take on added tasks when they see the need?
Work today is different from the past.
If this sounds too idealistic, maybe it’s because organizations of the past have used a different model for work. In an environment of command and control, the focus was on following rules, with little place for personal initiative. But today, that model cannot thrive in our global, highly competitive, constantly changing, and transparent world. Successful organizations today are characterized by high energy, a sense of urgency, focus, passion, and perseverance.
So how do you help your organization generate the enthusiasm that propels it toward prosperity? The key is to share a—bigger picture—view of work to guide people as they create the success each organization seeks. [Continue reading…]
by Sheila Margolis on January 5, 2010
