21. “If you are lucky enough to be
someone's employer then you
have a moral obligation to make
sure people do look forward to
coming to work.”
JOHN MACKEY – CEO, WHOLE FOODS MARKET
Good afternoon. Great to be with you all today. Really looking forward to conference and it’s great to be kicking it off.
For those of you who don’t know me, as *** mentioned, I am otherwise known as THE CULTURE GUY and when I work with clients, my job is to answer a very simple question. A question that people have been searching for an answer to since hunter-gathers came together as tribes, when their very survival depended on the answer. A question that even today, some very intelligent and skilled leaders seem unable to fathom. A question that if you can answer and implement, your organisation will begin to lead your industry.
Why do some groups succeed and others fail?
Why do some groups perform far higher standard than the sum of their parts and other teams with apparently highly talented individuals crash and burn? What is the deciding factor?
Ordinary > Sum of parts vs Highly skilled < sum of parts
More pertinently today, how do we make that happen when people are not in the same place. When we don’t regularly see each other in person.
Working long hours 80 - 100 hours per week. He hated the hassle of rubbish clients who needed chasing to pay and he realised the culture of his organisation was actually slowly killing him.
Eventually he got the point where he said enough is enough and he took some dramatic steps to change the culture of his business.
He pulled down all his signs and locked his front door and took his name out of the phone book,
He "Fired" more than half his customers the one's who caused him hassle.
He sawed up his reception desk and installed a Cappuccino Machine instead!
He introduced a courtesy system into his business, defining what's important and how people should behave, radically changing his culture.
Now bakes fresh dental buns for clients, and serves 30+ varieties of tea and coffee in fine bone china.
Only accepts new clients by referral from a current client
He works 23hrs/wk & earns 2.5 times the income,
Loves going work & is really happy!
He did it by redefining his culture and creating a place where his team wants to work and his customers love.
Firstly we introduced unlimited holiday.
Secondly we made the working day more flexible (essentially allowing people to work when they like).
Revenue up – Best 6 months in 6 year history
Productivity up 40%.
Staff turnover down to zero.
Holiday taken = unchanged.
Another company worth looking at it Wordpress. I am sure most of you have experienced Wordpress.
If you've ever been on the internet you will most likely have experienced WordPress.
As of January, this year, 35.6% of websites on the internet are run on WordPress which is given away for free since 2003 by its parent company Automattic.
It's values at £3Bn and makes about $150m per year.
But the amazing thing about WordPress is that I has no office. Its 1,313 employees all work from home.
Yet they remain fully engaged and productive. A new major software release every 4 months. Around 400 deployments for updates every week.
How do they keep a highly productive engaged workforce in 77 countries, 96 languages.
Well, Automattic is built on a clear and exciting purpose and organised around a series of clear and lived out values. And we're going to go through a framework to help you do it too.
What is culture?
Most think touchy feely – There is science – on impact and on why.
What do you understand by culture?
Old school friend
Values and practices shared by a group.
From Latin
Grow – what grows depends on the culture? Flowers or weeds or yoghurt!
A place where something grows.
Here’s the kicker -
3 Rules of Culture
Every organisation has one – two or more people
Defined by behaviour
Affects everything
In dozen's of experiments across several different cultures, the children on average built towers that were 26 inches tall (15-20% higher than the next best group which happened to be CEOs (21), the kids towers were 150% higher than the business students at an averages of 10 inches, and 65% higher than the lawyers managed at an averaged of 15 inches.
Lizard brain – Group Dynamics
Am I safe?
Now we don’t worry about lions and tigers and bears and other tribes and infections diseases.
What do I worry about?
Group culture is one of the most powerful forces on the planet. We sense it's presence inside successful businesses, championship teams, thriving families and we sense when it's absent or when it's toxic.
The recruitment company I worked with didn't increase revenue because they improved their skills, but because they created a safer place to work. Paddi Lund didn't build a better practice because he was a better dentist, but because he built a safer place for this team.
Understanding all this is fairly easy. It's not difficult see how creating a place of safety makes it easier for people to perform, but it's not easy to implement, otherwise everyone would be doing it and I'd be out of a job. It will take effort and energy and you will probably have to face some opposition in your organisations. That is all a normal part of change. You will probably have some false starts as well. Again that is not unusual. Implementing culture is part science and part art. The more you work at it the better you get and when you do….
You can increase your revenue.
I can give you a simple framework to help you start this process. It's what I call the one framework.
There are essentially four things an organisation needs to do to build the right culture (and when I say right culture, I mean right culture for the context of your organisation). There is not one single right culture. One person's trash is another person's gold. You have to define the right culture for your organisation. There is no one size fits all culture, but there are four key elements that everyone needs to consider and get right to build an authentic, consistent, coherent culture.
Start working through The One Framework
Four things – Purpose, Team, Voice, Focus
One Purpose
There are three parts
It’s not about the money
Steve Jobs at Apple 1997
Share your missions and what to do the job
Daniel Pink?
Fit the culture
Seal Teams
Grainger
Steve Jobs at Apple 1997
Share your missions and what to do the job
Daniel Pink?
Fit the culture
Seal Teams
Grainger – SIMON ?? If time.
One Voice part of the framework is used to ensure that what’s being said through marketing, in meetings, over the PR wires, via email etc, again reinforces the purpose.
Through this process businesses start to become authentic and trustworthy. They do what they say and are who they say.
Someone Famous
Want Authentic, trustworthy – consistent with purpose
Get it right = legions of fans
Longest part
Essentially this looks at everything else in the organisation: Metrics & Rewards; Policies and procedures; Environment etc, to ensure they all reinforce your mission, values and vision.
Management Consultant Story
----
So there it is …
The key to the whole thing is to BUILD ON PURPOSE in two ways. Be deliberate and make your purpose the foundation of your organisation.
Thank you so much for coming this morning and giving me your time. You now have something you can take back to your organisations and start the tough job of building a world class culture.
Some books?
All four elements need to be covered in a consistent way, otherwise we end up with an inauthentic culture. An organisation that talks a good game but fails to deliver. An organisation that we don't trust, because even though we may not be able to articulate what it is about the organisation that makes us feel uncomfortable, there is some incongruence, something not quite right.
I think it's safe to say we will have all experienced this at some point when we've called a mobile phone company, or a utility company or the local council or Ryan Air. Their advertising says one thing - how much they love their customers and serve their customers - but the reality is very different when you actually try to get them to help. The have the voice externally. They've probably defined their purpose. But they probably don't have a consistent voice inside the company, they don't have the team to deliver and they have policies and procedures that cut right across their defined purpose.
So we need to consider and implement all four elements to build a consistent, authentic culture that works to create safe, belonging space where people can perform their best work and the organisation.
This process of defining, implementing and embedding culture into an organisation can take months and sometimes years depending on the size of the organisation. But when we get it right, productivity goes up, revenue goes up. We we build an authentic, consistent culture based on core values we create an organisation that employees love to work at and clients can't help but talk about. Loyal employees and legions of fans.
Who doesn't want that?
That's it. The One Framework. One Purpose, One Team, One Voice, One Focus.
Thank you so much giving me your time. It's been great to be able to share with you and if you have any questions or want to comment on what I've said then just search Google for The Culture Guy and I'll be there at the top.
Feedback.
Slides and notes.
Have a great week and hope to see you in person soon.