Budget For Culture: How Investing In Your Team Drives Results

budget for culture

As a leader, every decision you make shapes your organizational culture, and when it comes to budgeting your limited resources, these decisions send powerful messages to your people about what’s most important. After all, money doesn’t just talk — it shouts your priorities through a bullhorn. You have to make budgeting decisions that drive your business’s strategy and goals. But too often, the technical aspects of your strategy are prioritized over the most important facet of your organization’s long-term performance: the people.

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The best plan in the world won’t survive if your people aren’t on board. But if you support your employees and nurture their enthusiasm, they’ll take care of your business. In fact, investing in your people can reap rewards that ripple across your entire organization and beyond. According to Gallup, organizations with above-average levels of employee engagement reap 147% higher earnings per share. Furthermore, when they engage both customers and employees, organizations experience a 240% jump in performance-related business outcomes. Clearly, you need to start investing in culture.

The concept may still seem abstract, so here are six concrete aspects of organizational culture to focus on:

1. Recruitment, orientation, and the employee experience: A new team member’s impression of how you treat employees is set from the beginning. Even during the recruiting process, the way candidates are treated sends a clear message about your company culture. These messages about expectations and a person’s value are reinforced during the onboarding process. With this in mind, you need to be thoughtful about your employee experience throughout their tenure with you and make it as seamless and supportive as possible. This kind of investment will pay dividends down the road.

2. Professional and leadership development: It’s not uncommon for business leaders to create strategies that require a significant shift in employee behavior to succeed. However, if you’re asking employees to do things differently, you need to anticipate their apprehension.

By setting aside resources to train your employees in the knowledge, skills, and abilities they’ll need to implement your plan, they’ll see that you’re serious about your changes and are willing to support them through the transition.

3. Compensation and incentives: Compensation is a massive and complex topic in business — one that can’t be underestimated. As a professional services firm, the lion’s share of my company’s budget goes into compensation. Our team members are expected to dedicate a lot of time and energy to the success of our clients, and they’re paid as well as possible because we value and trust in their abilities.

People’s total compensation (not just their base salary) will drive all sorts of behaviors, but your plan must be designed thoughtfully. If it’s not, you may find yourself in a no-win situation with employees behaving in ways that maximize their personal gain but don’t move your organization forward.

4. Rewards and recognition: Like compensation, rewards and recognition require resources, but they also send clear messages to your people about what behaviors are acceptable and encouraged and which are not.

Finding creative ways to recognize people who are creating value in your business is worth its weight in gold. Rewards and recognition aren’t one-size-fits-all strategies, though. Different people value different things, so you must take the time to get to know your team members and develop an understanding of what incentives will be the most appreciated.

5. The physical environment: The space in which people work can promote desired behaviors, but it can also be used to reinforce what’s most important to you in less direct ways. Put careful thought into the design of your office space. If your strategy dictates significant changes in how people do their jobs, you may need to make extra room in the budget to align their workspaces with your expectations.

6. Tools and equipment: When you’re budgeting to drive your strategy, a final key consideration is whether your people have the proper tools and equipment to fulfill your expectations. Outfitting your team with the wrong equipment will lead to disaster. You can’t ask your team to get to the moon with a roll of duct tape and a spatula; it will only hold your team back from accomplishing your overarching goals.

If you fail to think more holistically about the “what” and the “how,” your perfect business strategy will be left on the launch pad, unable to take off. Don’t let all that planning go to waste by ignoring the needs of the people who make your strategy effective. Investing in ways that communicate how much you value team members will drive the behaviors you need to reach your goals this year.

this article originally appeared on Forbes

How Culture and Leadership Pave the Road to the Super Bowl

As we head into Super Bowl 49 this weekend, we at gothamCulture can’t help but think about a professional football team’s culture and leadership that has (or has not) helped teams get to the big game.

Like a corporate organization, NFL football teams’ organizational culture is largely made up of leadership, team members, and the brand. Each of these plays a unique role in a successful (or unsuccessful) team on the road to the ultimate goal every year: a chance to win as world champions in the Super Bowl.

Leadership

Formally, the Coach provides a great deal of the leadership, like the CEO or the Executive Director. He sets the tone along with the team’s General Manager. The owner is usually the one who is most concerned about how well the team is doing and leads the hiring and firing of those two based on the team’s performance.

This might be similar to the board of directors or advisors in a more corporate organization. The Coach and General Manager are usually the first to take the fall if the team does badly. For example, as Owner Woody Johnson of Gotham City’s own 4-12 New York Jets said, “It became pretty apparent during the season the team wasn’t getting better and, as (Bill) Parcells said, you are what your record says you are…It was kind of obvious we had to make the change. It was obvious to me, anyway.”

Former Cleveland Brown’s quarterback Bernie Kosar reinforced the importance of this formal leadership in his recent comments, “When you have a front office that’s really uneducated, and I’m not talking about just the coach, there’s way above him that deserves this, they don’t know how to lead and organize and set a culture to play winning football, to win in the NFL consistently.”

Culture

The Owner, GM and Coach aren’t the only leaders on the team. Fans often hear about quarterbacks “leading” their team to victory. If the quarterback is having a bad day, it’s very hard for the team to do well, and often when quarterbacks are hot, the team is unstoppable.

These are the leaders in the organization who play outsized roles, whose successes and failures have ripple effects across the organization. While quarterbacks may control the game by function or role, and perhaps are the most visible of players, many other roles on the football team are critical to a team’s success.

One such example was during the NFC Championship and the Seattle Seahawks. Jon Ryan and the special teams players made a few critical plays when the team was losing badly to turn the game around. These pockets of action and success highlight the importance of the team coming together; the offense wasn’t the only one responsible for scoring points, just like one division within a company isn’t the only one responsible for making a profit.

And, even for those key opportunities for the special teams to be successful, advanced research was conducted on the opponent Green Bay Packers’ weaknesses, the coach had to be willing to take the risk to call the play, and the players needed to have the skills and focus to be able to deliver.

In corporate culture speak, this involves a culture of creativity, trust, empowerment, risk taking, and thorough market research of competitors.

Fan/Customer Appreciation

The Seattle Seahawks are also known for an organizational culture of appreciation. Their stadium is lined with #12 flags, representing their appreciation of their fans; arguably some of the most loyal in the country. They are the team’s 12th man on the field, and thereby critical to their success.

Seahawks fans are known to be so supportive and vocal that there was even a seismograph machine at both recent playoff games to measure the decibels. The fans screaming and jumping in the stadium was thought to be as powerful as a minor earthquake.

That kind of brand following is critical to organizational success.

Applying These Concepts To Your Organizational Culture

While the parallels between your corporate environment and the NFL may not be immediately apparent, there are some key concepts that you can apply to the culture of your organization:

  • The buck always stops with the formal leader; if it’s not working, don’t be afraid to make a change
  • Informal leadership within the organization plays a critical role in team success
  • A culture of learning, risk taking, empowerment and research can pay high-dividends
  • Appreciation goes a long way and leads to brand loyalty

What other relevant leadership and culture insights have you gleaned from watching football? Let us know how you’ve been inspired from leadership on the field into action in your office!

(photo credit: Jonathan Ferrey/Getty Images) 

 

5 Ways to Align Your Organizational Strategy and Culture

align strategy and culture

2015: A new year. A fresh start. The perfect time to review this past year, set new goals, and determine where you want your company to head this year. It’s time to take control of what this New Year will bring by aligning your company culture and organizational strategy.

I have previously explored how your business has its own culture, which infiltrates every aspect from leadership decision-making down to daily processes. And, when partnered with strategy, this culture propels businesses to high performance.

Understanding, and more importantly, developing that culture allows you to build and achieve your strategic objectives. A well defined, established corporate culture will provide the framework for your organizational development and strategic planning. Allow this culture to guide your planning process.

Though there is no single, perfect, cookie cutter method to ensure that your culture and organizational strategy align, there are some critical pieces that should be considered.

How to Ensure That Your Strategy and Culture Align

1. Take a look at who we are as leaders.

An organization’s long term success relies heavily on leadership, its ability to embody/implement your company culture and to lead the company toward its strategic goals. Key leadership, those that set the tone for the strategy and culture of the organization, must understand their own strengths and weaknesses as leaders along with those of the entire leadership team. Without this insight, the implementation of organizational strategy will be stifled, starting at the top, from the beginning. Assessing your leadership is an important step in developing and realizing your strategic plan while creating an atmosphere where people want to work, succeed, and stay.

2. Gain a realistic view of your organization.

Just as we need to assess the leadership of an organization, leadership must assess the organizational maturity as well as the process maturity of a company. Evaluating where your organization stands and understanding its current state offers perspective of its strengths, weaknesses, and opportunities for improvement. It provides a view of what your company can realistically handle and allows you to build your plan around that knowledge.

3. Plan where you are headed and how you will get there.

Developing your strategy will guide your company in reaching its ultimate goals and objectives. Take the time to develop organizational priorities, themes, and accountability as well as a process to manage those priorities.

4. What if?

Once you have some your strategies developed, test them out. Create a series of “What If?” scenarios to get a feel for how well your strategic plans are suited to real life situations. Are your plans realistic? Or are they lofty goals which do not truly guide your business? Risk management and scenario methodologies can help you create a more concrete, reliable plan to lead your organization toward your goals. Use this information to re-work and tweak your strategic plan, then test again.

5. Manage and sustain your progress!

It’s great to pull all these pieces of the puzzle together, but you need to plan how you will keep them all afloat. More importantly, you must then follow through. Keep tabs on how you are managing performance, communications, personnel, resources and all the moving parts that make your company tick. Assess, plan, re-assess, plan again… Once you have the taken those first steps in getting your company headed in the right direction, you won’t need to reinvent the wheel each time you do a self-check. You can compare where you are to your baseline and goals to see how you measure up.

Your strategy and culture are yours to develop. Create the company you want through a clearly defined culture and a solid strategy for getting there. If you’re interested in learning more, take a look at our services, and talk to us about how Strategy and Culture go hand in hand.

How to Build a Sustainable Startup Culture For Rapid Growth

In today’s fiercely competitive startup landscape, entrepreneurs are faced with new challenges on a daily basis. Beyond the actual viability of the market for their product or service, they must ensure that they focus on building a sustainable organization that continues to thrive as they grow and change.

Guiding a company from startup to success means finding the balance between a sustainable growth strategy, a culture that reflects your values and supports your people, and a leadership team that will help drive the change.

Finding that balance is a challenge, however. It’s not just about having a cool office or great benefits. You have to ensure your employees and your culture are aligned with your vision for growth. Your leadership has to be invested in the values and direction of the company; fostering an ecosystem that drives the behaviors you need for success.

Know WHY You’re In Business

The most important aspect of your startup culture is ensuring it aligns with WHY you’re in business. Is it about providing exceptional customer service?  Is it speed and efficiency?  World change?

Whatever it is, the culture should be reflected in what your customers see and experience. What are people passionate about, and what is the ideal environment that supports that? Some would argue attention to culture is even more important than processes, plans, and requirements.

Keep in mind: looking for culture fit is great when hiring, so long as you want to reinforce the culture you currently have. If, however, you are looking to change the culture, hiring and keeping people who embody those values and behaviors is the way to go.

Start by understanding why you’re in business and what kinds of values define your organization. Starting with an intentional and authentic understanding of this can serve as a hiring lens as your company grows.

It’s then the responsibility of senior leadership and other key personnel to give it the momentum you need to drive change in the right direction. You have to ensure that your people feel supported by the leadership and culture so they stick around.

How Important Are First Impressions?

Today’s rapidly growing startups are often pressured to find the balance between looking cool, hip and successful to attract top talent, while not blowing their budget on office space and benefits.

While a small company cannot keep up with the likes of Google in terms of benefits or campus amenities, first impressions are still critical to attracting and retaining the right people.

Careful attention must be paid to the culture that is visible. But, more importantly, the substance must be there as well. Perks, games, and exposed brick walls mean nothing if they are simply window dressing. They must serve some sort of greater purpose within the organization.

Start with ‘why’ and align your culture and your people around those values.

3 Tips For Building A Thriving Culture

Here are three specific considerations for your rapidly growing company to build and nurture a sustainable startup culture:

1. Use core values as the hiring lens. Core values should align with, and reflect company culture. If they don’t, it may be time for you and your team to do some rethinking to do on that front first!

Core values are where an organization has opportunity to reflect culture in written form. So much of culture is intangible or understood and not necessarily discussed or documented. Revisit the ideas that inspired you to be in business in the first place, and use them as a compass to guide your hiring decisions.

Put those core values to work.

2. Long to hire and quick to fire. It’s an old business axiom but it has some relevance here. Take the time to explore, inquire, test, and evaluate each candidate to ensure that they align well with your organizational culture. Do they believe in the same values that your company follows? Are they going to proactively improve the existing culture as your company grows and changes?

Having extended dialogue with each of your candidates also ensures you’re giving them the opportunity to evaluate company fit as well. Beyond just wanting or needing a job for a job’s sake, what role can your company play in their career and/or personal development over time? Does your company’s mission align with their goals as a person and a professional?

“Quick to fire” may not be as important here as “quick to ensure people are sticking to core values” and practicing the kinds of behaviors and qualities you want to see reflected in your culture.

3. Disrupt patterns through culture oriented actions and events. Reinforce your company culture through disruptive and experiential organization activities.

Internally, this means nurturing your culture among your team. Host events to discuss organizational objectives and provide opportunities for people to provide their input. Think about development programs to train on specific intended outcomes.

Externally, it means creating customer experiences that involve personnel in culturally specific ways. These are opportunities to show off your company culture to your customers, and give them an idea of how your values and your people align with your branding and customer experience.

 

It is almost too easy to ignore culture in a growing/thriving startup.  We get caught up in the operations of success, the glory of new outcomes, or the challenges faced.  Ignoring culture now, however, at this crucial juncture, more than likely creates trouble spots as the company grows.  Being mindful of using culture as a hiring lens, as a means for guiding continued development, and as a springboard for a broader diversification of experiential activities will lead to benefits not only in the maturation of culture, but in the growth and success of the business overall.

Manage Risk By Building Antifragile Organizational Cultures

Although it’s been out for a couple years, I recently reread Nassim Nicholas Taleb’s books The Black Swan and Antifragile.  When they came in out the midst of the recession, they quickly caught the attention of readers looking for answers as to why we didn’t see the financial crisis coming and how can we protect ourselves in the future.

When I picked them up again recently, I realized that Taleb wasn’t focused specifically on finance. Rather, the applicability of his risk mitigation paradigm across disciplines and markets.  In this light, he offers some excellent insights that are especially useful for shaping and enhancing organizational cultures.

What is Fragility?

Taleb defines fragility as systems that are negatively impacted by shocks, disruption, and disorder.  At the opposite end of the spectrum, he invents the term antifragility (mainly because there is not word in the lexicon that captures this concept) to describe systems that grow and flourish when exposed to shocks, disruption, and disorder.  Sitting in between these extremes is robustness, where a system remains neutral and neither gain nor decline from random events.

The concepts of fragility, robustness, and antifragility ultimately come down to risk.

Fragility comes about when we assume too much risk in a particular area. This hinders our ability to adapt when risks become actualized.  As an example, Taleb points to the financial sector during the financial crisis where firms had invested significant portions of their portfolio in high risk areas. Since they had not changed their practices from previous crises, they were susceptible to the same issue areas.

All it took was one big shock and these organizations crumbled. Hence; “fragile.”

Conversely, antifragility occurs when we diversify our risks and use failures (which are small because risk is dispersed) as opportunities to learn and improve the system. Taleb uses the airline industry as an example of antifragility.

When accidents occur, the airlines conduct a thorough after-action review to determine the root cause of the failure.  They then take that information and use it to update their systems and practices in their existing and future fleets.  Although tragic, the accident serves to make every subsequent flight safer and improve the airline industry as a whole.

At the outset, the distinction may seem fairly simple: fragility occurs when we have concentrated risks, antifragility occurs when risks are dispersed. But Taleb points out another critical aspect of the equation:

We have no way of knowing (1) the real level of risk we have (Taleb is skeptical of models, especially since we rarely consider the assumptions and limits they are based on), and (2) when risks will come to fruition (Taleb believes in the inevitability of large, unpredictable “black swan” events).

We are largely working in the dark and must act as if we will be exposed to risk at any moment. Therefore, the ultimate goal of antifragility is to determine how to live, act, and thrive in a world we do not fully understand.

Building An Antifragile Culture

So far, we have outlined the central ideas within the fragility/antifragility framework.  Here’s a quick recap of what we’ve covered:

  • Risks are inevitable and we have no idea when they will happen
  • Fragility = bad for growth, results from concentrated risks and lack of feedback loops, crumbles under risk
  • Antifragility = good for growth, results from dispersed risks and active use of feedback loops, flourishes from risk

How can this concept foster resilient organizational cultures?

It is not a huge leap to think that organizations and their cultures can also be fragile or antifragile. Fragile cultures are those that are unable to adapt to changing environments and unforeseen risks.

Fragile cultures are characterized by:

  • Highly centralized organizational structure
  • Dominance of one or two departments in the decision making process (all departments become exposed to the risks inherent to the dominant groups)
  • Attitudes of risk avoidance and insulation from change
  • Unsupportive of “tinkering” with new ideas on a small scale
  • Lack of (or disinterest in) feedback loops to integrate lessons learned

Antifragile cultures are those that are well versed in change and use dispersed risks as opportunities to learn more about how their organization functions under pressure and implement improvements.

Antifragile cultures are characterized by:

  • Moderately decentralized (“lean” or “flat”) organizational structure
  • All departments have say in decision making process (departments are represented in key decisions and given autonomy internally)
  • Embraces risk as opportunities for learning, disperses risks across the organization so no one risk can have a significant impact
  • High support of “tinkering” as way to test and improve the system
  • Significant interest (and use of) formal and informal feedback loops to integrate lessons learned

To illustrate the differences in these types of cultures, we can point to two real world examples.

Most large firms lean more toward the fragile side of the spectrum. Many are characterized by rigid processes, interdepartmental conflict, risk avoidance, disinterest in new ideas, poor communication, and the consolidation of risk into one or two significant projects.

Startups, on the other hand, lean more toward the antifragile side of the spectrum.  Many are characterized by agile processes, manageable conflict, risk acceptance embracing new ideas, frequent communication within and across departments, and decentralized risks across a number of projects.

This is not to say that startups are more praiseworthy than large firms. At some point, most firms will mature and transition into formalized organizations. The challenge is making this transition without jeopardizing the firm’s ability to thrive under change.

How Your Organization Can Thrive

Here are some recommendations to foster antifragile practices within your growing organization:

  1. Keep Decision Making Local: People closest to a problem are often the most equipped to solve it.  In addition, this encourages experimentation with new ideas and strategies.
  2. Encourage Frequent and Open Communications: One of the major causes of distress within organizations is the inability to communicate information across departments.  Open communication sets a precedent that new ideas are welcome and establishes a feedback loop to incorporate lessons learned and best practices.
  3. Encourage Risk Taking on a Small Scale:  Many organizations focus on “avoiding” risks, but this may unnecessarily weaken the organization in the long run.  Avoiding risk prevents us from learning from our failures, risks accumulate and overtime may become systemic.  Dispersed risks enable organizations to try new ideas without putting the entire organization in jeopardy.
  4. Celebrate Failure: Every failure is a learning opportunity for everyone.  Failures enable us to identify the root causes of the issue, correct the issue, and improve the overall system.  As long as failures are small and dispersed, they serve to benefit the organization as a whole.
  5. Hedge Against the Future: It’s difficult to accurately predict what the market will look like 5-10 years down the road.  Organizations should be cautious of ventures which could be a liability if the market takes a sudden turn.

Risks aren’t confined to the financial world, and are inherent in all aspects of our organizations, including culture.  The way we approach risk heavily impacts whether we succeed or fail in the ever-evolving marketplace.

Fragility and antifragility are two ways of understanding and addressing organizational risks. By using antifragile practices to leverage small risks as opportunities,we can improve the way we manage our organizations and enhance our ability to thrive during periods of rapid change.

How does your organization manage risk through culture development?

How Emergent Order Creates Thriving Organizations

The world is a fascinating place.

Ever wonder how we are able to accomplish so much without one person directing all the moving pieces? iPhones, Wikipedia, cars, the shoes you wear, last night’s dinner; all these things were made possible through the efforts of thousands of people each pursuing their own ends, and in doing so they cooperated to make our lives better.

Economists call this emergent order, more commonly known as self-organization.

Although difficult to wrap our heads around, emergent orders are actually very common. Markets, law, and language are all examples of unplanned systems that evolve naturally through our interactions. The beauty of emergent orders is that they are able to thrive because they constantly change and adapt to new circumstances.

Organizations, on the other hand, are commonly thought of as “islands of planning in a sea of emergence.”  That thought is more or less correct; organizations involve layers of managers directing employees to address different challenges. But underlying that structure are rich environments of employees and teams connecting and cooperating to achieve great feats.

Self-organization is the life force that enables “work” to happen.

Because it’s difficult to pinpoint, it often goes unrecognized. Therein lies a significant organizational culture opportunity.

Below are several examples to help illustrate the relevance of and importance self-organization:

Organizational Culture and Values

Why do different departments use drastically different terminologies for the same thing? Why are some organizations more cohesive than others?

The answer is simple, although the mechanics behind it are pretty complex: Coworkers have a lot more influence on each other than we give them credit. Our attitudes and actions are as much a product of ourselves as they are the people around us. As we intermingle, our values cross-pollinate and shape the organization’s overall culture. And in doing so, the culture can take on a life of its own.

When one person has difficulty shaking habits that have emerged over the years, changing the culture becomes challenging. But within this challenge lies a hidden blessing: with enough positive enforcement, new habits can form and shape the culture over time.

Social Networks

Here’s a bold claim: the majority of work gets done outside the traditional chain of command.

In other words, people, driven by their desire to do their jobs successfully, self-organize to achieve their mutual goals. If you look at social networks within organizations, you’ll find that it may look very different from the org chart. The hubs are not necessarily managers, but rather employees with the broadest social connections who are able to bridge the gap between departments.

Given the ability and motivation, employees will diligently seek out solutions to their problems by building partnerships and sharing ideas. This is really a textbook case for emergence.

Rules, Policies, and Regulations

Sure, a lot of rules and regulations are cumbersome. Most people grudgingly accept them, and in a lot of cases they can be somewhat arbitrary.  But, behind each rule there’s a history, an event, or chain of events that brought it into being.

For example, recently gothamCulture has engaged in a long-term effort to create a culture of safety for one of our clients. Most organizations have safety policies, resulting from years of trial and error, and a process of learning from their successes and failures.

This particular organization simply didn’t sit down and lay out an ideal set of safety policies. In many cases they had had to figure things out the hard way; piece by piece.  In all cases, accidents, as unfortunate as they are, force organizations to reevaluate the way they protect employees from harm.  Rules are constantly evolving, and policies change, bit by bit, to ensure certain standards are maintained.

Sometimes policies are well-intentioned missteps, but the process behind it involves the nuanced interplay among people’s values, attitudes, and actions over time.

Why It Matters

So why does self-organization matter? How is emergence relevant to you or your organization?

Work is inherently social. It is a rich ecosystem that is constantly moving toward some end.  We cannot effectively understand organizations, let alone start to change them, without appreciating the role emergence and self-organization played in how getting the organization to its present state. By doing so, we reveal the many different avenues to implement change effectively.

Below are some great resources on emergent orders:

I, Pencil – Leonard Read

Emergence – Jane Adams

The Use of Knowledge in Society – Friedrich Hayek

Where Good Ideas Come From – Steven Johnson

Leadership and the New Science – Margaret Wheatley

Shatter Today’s Organizational Myths by Crowdsourcing Culture

Think back to the last company change initiative you spearheaded. If your company is like most, you sent a survey to employees via email. Some employees might have grumbled about it and eventually filled it out; the senior leadership team then sat down and attempted to make sense of the feedback.

Unfortunately, this approach can only take leaders so far. Organizational surveys aren’t always effective because they’re limited to what leaders think is important to ask. They fail to engage the organization’s stakeholders in an active dialogue, and they only address culture at one point in the process, leaving leaders to make decisions throughout the year based on stale information.

Most importantly, this top-down approach to culture creates a cycle in which leaders do all the work — setting unrealistic expectations that doom an organization from the start.

I’m a culture guy, so the lion’s share of organizational assessments I’ve seen and led deal specifically with culture. These lessons can be generalized across most organization-wide data collection efforts, however.

Though most companies approach culture assessment and change as described above, creating a strong culture is the ultimate opportunity to take advantage of the wisdom of the crowd. When employees, leaders, and other stakeholders have a say in a company’s culture, the insights that arise are often the most innovative and effective solutions. After all, your employees are closest to the everyday issues in the workplace.

By tapping into and including the input of people at every level of your organization, you start at the beating heart of your company. And by engaging them on a regular basis (rather than once a year), you can leverage that collective intelligence to drive the business forward.

This is the way we at gothamCulture have long approached our work, but the recent trend in social media circles of calling everything “crowdsourcing” made me reconsider why. After all, inviting the crowd into the process can be messy, and tackling any cultural problem is much more than an item on a checklist — but that’s the point.

Looking back on our nine years of work in this space, there are several long-standing beliefs and assumptions worth challenging regarding how organizations do, and should, develop highly functioning cultures.

These myths include (but are not limited to):

1. The experts have all the answers. The days of a small group of “experts” sitting in a war room and coming up with the ultimate solution for the masses are gone. People expect more from their work experience. They want to exercise some level of control in their environment.

When senior leadership teams make decisions in isolation, they do so based on a limited amount of information. It’s one particular version of reality fed to them by others who may have their own agendas. Leaders may think they have an in-depth understanding of issues’ nuances when, in fact, they may be too far removed from what’s really going on to make the most effective decisions.

2.  The people within the organization don’t know what’s best. This is the misguided assumption that drives leaders to rely on “experts” rather than employees in the trenches. Over time, leaders may conclude that people in the organization’s ranks are unable to comprehend the complexities of their everyday tasks, but that’s seldom the truth.

In our work, we’ve found that those closest to the issues oftentimes have the most profound perspectives on them. In many cases, they’ve already figured out solutions and workarounds for some of the organization’s biggest problems. The only reason they haven’t voiced their opinions is because nobody thought to ask — or asked the wrong questions.

3.  Annual surveys and focus groups give us the right information at the right time. How could we ever assume that an organization’s lifeblood — its people — only have something valuable to contribute once a year? The traditional annual survey limits the amount and type of information you can get from stakeholders and reinforces a skewed perception of reality.

Leaders take that information, sort it, and make sweeping changes that affect the entire organization based on a few data points. The collected stories and feelings of various team members, in conjunction with quantitative assessments, result in better conclusions than those arrived at through paper surveys or digital tallies alone.

Successful businesses of the future will leverage technology to drive constant input and feedback from all stakeholders. These continuous feedback loops will increase inclusivity of people and ideas, freeing leaders from relying on annual surveys to drive their decisions. This collective approach will also reveal opportunities and red flags earlier so they can be addressed in a timely manner.

We’re starting to question organizational norms that have existed for decades, and it’s just the beginning. As more Millennials enter the workforce, companies are realizing that today’s stakeholders expect continual involvement, and they’re being forced to adapt quickly to the changing tide.

To successfully evolve and deliver on your stakeholders’ high expectations, you can’t hold on to antiquated practices and continue making decisions based on outdated beliefs and assumptions. Organizations that adapt to leverage new values and the input of their stakeholders will come out on top. They’ll mine the crowd to form a truly accurate sense of their environment, they’ll be better equipped to make more accurate and timely decisions, and they’ll be much more adept at engaging their stakeholders through a collective and crowdsourced organizational culture.

This article originally appeared on Forbes

Onboarding New Employees: How To Build A Sustainable Process

In rapidly growing companies, hiring and retaining the right employees is one of the hardest things for effective leaders to get right.

On one hand, your company needs the right process in place to hire and keep the right people. There has to be an appealing lure to attract them, and the benefits have to be worthwhile enough to keep them.

On the other hand, the company branding and benefits you offer can only tell them so much of the story. The everyday behaviors that shape your organizational culture will have an ongoing effect on each one of your employees.

It’s important to realize that your people are your company’s most valuable asset, and finding the right “fit” between company and that most valuable asset is paramount to success.

There are bigger things to consider than benefits and bonuses when bringing on new people. Your workforce, particularly the millennial generation, wants to know what your company stands for.  They want to be part of something bigger than themselves.

The way you communicate your benefits and purpose to them from the beginning may be the most important part in setting them up for success.

So, how do you give your new employees an accurate picture of your company’s brand, its values, and their place in the overall picture of the organization?

Here are 3 points to consider when building a sustainable onboarding process for your growing company:

1. Does It Scale?

When you’re small, as in a startup, it’s much easier to find the right people and orient them quickly with the rest of your team.

It’s likely that small companies thoroughly vet their candidates for cultural fit when they hire. But, as an organization grows, it becomes increasingly difficult to maintain the same processes. A strategy that works for a group of 20 people may not scale to a company of 200 people.

Make sure your onboarding processes are built to last. Rapidly growing companies who plan ahead of these changes will see more success, particularly as they delegate these onboarding processes to other hiring managers as they grow.

2. What Information Do You Include?

Onboarding and orienting employees is challenging.  Organizations face a balancing act between conveying large quantities of information and keeping new employees engaged and interested.

Considering most employees will only really understand the organization’s culture once they are officially on the job, picking and choosing what information to share during the onboarding process adds to the challenge.

Most people today like to digest snackable information, not an entire meal at once. Consider keeping the information segments of your process short, so employees can take away the bite-size nuggets and figure out where they might want to ask questions to get further insights.

One recent example is Samsung’s orientation rap video that went viral to mixed reviews. While Samsung’s effort to communicate a lot of information in an engaging, short format should be applauded, the execution left something to be desired.

Their video is a perfect example of why it’s so important to keep the context in mind. Your employees are there to be professionals; to further their careers. If your presentation is too slapstick or silly, you risk losing people to it as something that is nonsensical, or not a fit for the organization and its people.

On the other hand, a completely dry delivery of rules, stats, and facts about your company can put your new hires to sleep, causing them to disengage before they start their first shift.

Your challenge is keeping them interested and engaged in a way that both reflects your culture and doesn’t turn people off.

3. What Is The Employee Experience?

Are you sitting your new employees in front of a computer to go through self-directed orientation? Are you personally illustrating your values and guidelines on a whiteboard? Do you partner them with a senior member of your team to learn the ropes?

These first steps of the onboarding process are not just a way to convey information. They also give your brand new employee a taste of what your culture is like on a daily basis.

They can walk away feeling motivated, supported, and comfortable in their new environment, or they can leave feeling overloaded and confused.

Empowering Your People

There’s no doubt that your organizational culture is based largely on the everyday behaviors of your people. Finding the right people who fit into your overall strategy and vision is a challenge in itself. Once you find them, however, your challenge becomes empowering them to carry out your vision to every customer they meet.

It takes more effort than simply putting warm bodies on the sales floor or in the call center. You have to equip them with the right tools to do their job well, carry your vision for success, and feel a purpose behind what they are doing for your company on a daily basis.

“If you take care of your people, your people will take care of your customers and your business will take care of itself.” –JW Marriott

[starbox id=”Cary Paul,Stuart Farrand”]

Organizational Development: Balancing Analytics and Intuition

analytics and intuition

For years, businesses have relied on experience, trial and error, and heuristics to make decisions.  But, change is in the air. Data analytics has added a new dimension to the decision-making process, giving business leaders access to new, previously unavailable insights.

Unfortunately, there may be a split in the business world regarding its use.  While some are skeptical about the move toward analytics, others believe it should be the primary tool for business.  In both cases, they tend to miss the bigger picture.

Analytics was never intended to replace intuition, but to supplement it instead.

A Beautiful Combination

The beauty is in the combination. Analytics provides context to the insights that (most) business leaders already possess.

Two recent books help illustrate this point: The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies, by Erik Brynjolfsson and Andrew McAffee, and Average Is Over: Powering America Beyond the Great Stagnation, by Tyler Cowen. Both provide a glimpse of the many ways technology will change the workplace over the course of this century.

Both books use the example of freestyle chess to demonstrate the potential of partnering human intuition with data processing.

For those who are not familiar, freestyle is a type of chess match where humans partner with computers and compete against each other.  Not surprisingly, there are many instances where computers have defeated a chess master. And yet, humans cooperating with computers have easily defeated both humans and computers acting alone.

The reason behind this is what’s interesting. Computers use probabilities to determine an optimal move.  Humans, on the other hand, rely on their experiences and intuition to identify opportunities and implement different strategies.  The computer provides the raw processing power, while the human provides a superior understanding of the game’s mechanics.

The freestyle chess example is a simple illustration, but it demonstrates something more complex for modern organizations seeking new direction: the potential of depolarizing analytics and intuition.

The Analytics Potential

Leveraging analytics, we can aggregate, process, and understand more information than was conceivable even 20 years ago. Analytics Training is a great way to be able to be able to reach your businesses highest potential as it will allow you to have the greatest understanding of how to read your results and invest that knowledge back into the business.

However, it’s important to note that analytics is based on models. In using it as a tool, we need to understand the basic assumptions and limitations of using a model, and use our intuition and experience to fill in the gaps and enhance the analysis process.

Organizational development is a field full of data. In many cases, there is too much information available for one individual to thoroughly digest, analyze, and interpret.  As in freestyle chess, analytics uncovers the trends, but the human in the mix determines which trends are most relevant. That’s how organizations come to understand which trends are worth further investigation.

By utilizing a broader set of tools through that balance, organizations can improve their ability to process information and understand the world within their walls.  It all comes down to balance. Rather than separating the qualitative from quantitative process from one another, organizational development should be informed by both data and intuition in order to drive the desired outcomes.

How To Take The ‘Cult’ Out Of Your Company Culture

cult company culture

When you think of a cult, do shuttle buses come to mind? Probably not, but Silicon Valley tech companies have used this method of transportation to keep their workers isolated from the rest of the world. And as they bind their employees closer together, workers are significantly less likely to leave.

While the term “cult” often conjures up mental images of drab clothes, remote farms, and blue Kool-Aid, cults can also refer to the culture within certain companies. A cult, after all, is simply a group connected by appreciation for the same thing, person, or ideal.

There’s no doubt that articulating a clear and compelling vision for the future of your organization can drive member excitement, but things get murky when control enters the equation. If your company culture governs the thinking and behavior of its members, then you might be entering cult territory.

Your Company Might Be a Cult If…

There are multiple signs that indicate that your company is exhibiting cult-like behavior — for example, encouraging your employees to blindly follow a charismatic leader. By taking the leader’s opinions as fact, your company may grow so rigid that innovation becomes impossible.

Additionally, organizations that minimize two-way dialogue stifle growth and encourage employees to accept the status quo and silence their opinions. However, creating an environment where people don’t push back and aren’t engaged in healthy debate can lead to serious problems.

Lastly, in cult-like organizations, values are taken to such an extreme that anyone who questions the way things are done is quickly ostracized or ejected.

Create a Collaborative Environment

All of these practices can seriously endanger the health of your organization. If you’re noticing any of them creeping up, put these four fixes in place to safeguard your company from becoming more of a cult than a culture:

1. Take Responsibility

Once you’ve diagnosed the situation, take responsibility rather than avoid the issues at hand. Author Ronald Heifetz suggests reducing avoidance mechanisms such as denying, scapegoating, or pretending that the problem is technical. Companies that attack individuals rather than issues risk further cult-like behavior.Owning the behavior is difficult. You should allow people to take responsibility for problems, but they should do so at a rate they can handle.

2. Introduce New Talent

Strive to introduce new, talented employees who live on the fringes of a culture fit. If you onboard people who challenge the culture, your company will be able to grow and mature.You may need to rely on new members of the organization to raise the issue of cult-like behavior because they’re experiencing your company for the first time. Encourage acceptance of these new employees — particularly when your goal is to change the company’s trajectory.

3. Create Dialogue Mechanisms

Develop mechanisms for leaders and employees to engage in honest, two-way dialogue in a safe environment. Talking with new hires, consultants, and advisors will force your organization to think about problems from multiple angles.You must protect people who raise hard questions. At first, raising these potential problems will generate distress, but the questions will challenge your employees to rethink the issues at stake.

4. Reward Responsible Risk-Taking

Establish a new team, business, or investment with clear authority to take risks and create beyond the organization’s previous boundaries. Businesses can only grow through introducing new ideas and taking appropriate risks.Share the charter of the new team with your company to ensure that individuals threatened by the venture know that the team is working on behalf of the whole.

Some companies would disagree with the notion that creating a cult-like culture is a bad thing — they believe that culture drives people’s thinking and behaviors to increase performance and productivity. It’s a fine line to walk, but leaders shouldn’t be compelled to manipulate their employees or do things that benefit the company at the expense of employee livelihood.

Instead, create a system in which people are informed, engaged, and aligned around a compelling path forward. If you promote an open environment that values new talent, you may even save a few dollars on bus fare.

This article originally appeared on Forbes