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.

Harness The Power Of Self-Organization To Fuel Your Culture

In my previous post, I discussed how self-organization (or emergent order) is the foundation for organizational success.  In this post, I’d like to propose some ideas for working with emergent orders (rather than against them) to enhance the workplace.

First and foremost, the concept of emergence can be difficult to grasp.

Emergence is an impersonal process that involves the interplay between our actions and those of others. Individually, I can only influence a small portion of the whole, but collectively our actions have a profound impact on everyone involved. We often aren’t able to see the connections among our actions, the system as a whole, and how that system impacts other people.

In studying emergence, we often become fixated the parts that are closest to us, but neglect the bigger picture of how the parts are interrelated.  Through emergence, we realize that everything is connected and the world becomes much larger than we previously thought.

Understanding the magnitude of the connections and how they are related is the most challenging (but also most rewarding) aspect of emergence.

Understanding Self-Organization

The policies and procedures put in place by leaders in any organization do not fully define the underlying culture. They help guide the organization but don’t have as much impact on the day-to-day business of getting work done; that is the job of self-organization. Whether you recognize it or not, there are always undercurrents of communication and camaraderie running throughout any business environment. While it may not be visible on the surface, the behaviors of your colleagues are often the biggest drivers of your culture.

The relationship among emergence, culture, and policy is like a garden.  If you provide the right type of nourishment and conditions, things naturally flourish.  Sometimes you neglect to provide key nourishment and the plants wilt.  Other times you may add too much and the plants suffer as well. The trick is finding the right balance to allow the garden to grow.

Similarly, policies can enable or inhibit our ability to self-organize. By clearly defining the conditions that enable self-organization to thrive, we can determine the right type of policies and procedures to channel our relationships in ways that strengthen our organizational culture. This will look different for each organization, but it becomes a powerful way for leadership to focus the existing underlying self-organization that is propelling the organization forward.

When trying to channel emergent orders, there are a couple ground rules to remember:

1. People respond to incentives: Rules and incentives guide our behavior.  We use incentives to help make decisions and plan for the future.

2. Institutions matter: Values, structures, and processes that have stood the test of time probably serve some purpose.  Although institutions may need to change, their impact on the workplace cannot be ignored.  We also cannot expect institutions to change overnight.

3. Work is social: At the end of the day, most change efforts aim to improve the way we work together.  It’s important to focus on how work is actually being accomplished: How do departments communicate? Where are the breakdowns? And who are the influencers? We cannot neglect the social aspects of work.

How Self-Organization Can Be Used to Your Advantage

The ground rules above provide a context for understanding workplace dynamics. Many change efforts fail because we neglect to appreciate the role incentives, institutions, and social networks play in our everyday lives.

For example, focusing solely on incentives (greater productivity) at the expense of collaboration can make people feel isolated and hurt the organization overall. In addition, trying to force two groups to work together without understanding their underlying (and often different) values can cause headaches and animosity.

If we have a firm grasp on the ground rules, leveraging self-organization becomes substantially easier.  People naturally organize to get work done, this may look different in different parts of the organization or when focusing on different challenges.

There isn’t necessarily a one-size-fits all strategy, but there are some general guidelines that we can employ to use self-organization to our advantage:

1. Establish clear expectations: Establish clear expectations which people can use to guide their actions and steer their interactions.  Expectations should be applied consistently across the organization.

2. Keep communication open: Since work is social, it is critical to ensure people continue to communicate. When bottlenecks happen, don’t hesitate to roll up your sleeves and help forge new partnerships. 

3. Leverage focal points: Who/where are the hubs were people/information congregate? What is happening in the hubs?  Who are the influencers? These can serve as great opportunities to spread information and implement change efforts.

4. Reward problem solving: People like to be recognized for their accomplishments. Solving complex problems involves many people cooperating across different parts of the organization. It’s important to recognize their contributions both individually and collectively as a team. It’s also critical to encourage these individuals to share best practices with others and cross-pollinate ideas (culture is contagious).

5. Think through unintended consequences: Every action has the potential to create outcomes we couldn’t have anticipated.  Before beginning a change effort, it’s important to be cautious and weigh the costs and benefits of different options. Think back to the ground rules.  There needs to be an “exit strategy” when unintended consequences happen.

6. Be open to new directions: Emergent orders can take on a new shapes as the organization changes. Policies and guidelines should be general enough to accommodate these changes. When unintended consequences happen, we should be flexible and modify our guidance as needed. We should never pigeonhole ourselves to move in a single direction.

Although we often don’t notice it, emergence plays a vital role in our organizations every day.  Emergence is the natural outcome of many people working together to achieve common goals. It is an important (and under-appreciated) contributor to the success of every organization, but leveraging it presents challenges in that we can’t fully understand how all the moving pieces fit together.

Sometimes we aren’t aware of how our policies and processes impact our ability to self-organize; when we act, we could be hurting our organization in the long run. By being cognizant of how incentives, institutions, and social networks shape our culture, we can take proactive steps to ensure policies enable (rather than inhibit) self-organization

Time For a Change? Consider Company Culture In 2015

2015 culture change

As 2014 comes to a close, let’s take a moment to reflect on our business successes and opportunities. Maybe you’ve had a successful year. Your company hit a new milestone, or doubled your revenue.

Or, maybe your planning for next year was more about finding opportunities than celebrating success.

No matter what last year means to your organization, 2015 is a brand new year, and for most companies, it means an opportunity to do things differently. You may be wondering how to reignite the flame that drove your business in the very beginning. Maybe you need that one big change that’s going to excite your team to succeed in the New Year.

There have been a lot of trends in office design and management style come and go over the last few years. And if you’re looking for answers, it may be tempting to try one of these “innovative” ways of doing business. But, before you invest in a new putting green in your office or move to an open office design, make sure you’re making the changes for the right reasons.

Our team knows the importance of building a resilient company culture better than anyone. So we asked them to share one piece of advice for a business like yours as you head into 2015:

Dustin Schneider – Senior Associate

Dustin Schneider“Culture” was just recently named Merriam-Webster’s word of the year for 2014.  Culture, by their definition, represents the system of thinking, behaving, and working in organizations.

That’s big!

There is a lot of power wrapped up in that little definition, but there’s even more power in understanding it and acting based on it.  So if 2014 was the year of understanding the high-level concept, I think 2015 should be the year of diving into it.

Take a look under the hood and shine some light on the culture in your organizations.  Get out there, talk to people, hear the stories, question the underlying beliefs and assumptions, and take some steps toward addressing the elements of your culture that aren’t serving you well; whatever they might be.  If you do, I think you’ll find there’s a lot you can learn, and apply, that will have a real, tangible impact on your business.

Early favorite for 2015’s word of the year: performance.

Samantha Goldman – Associate

samantha-goldmanI recommend that every organization do a Values Audit.

An organization-wide exploration into how organizational values are reflected in policies, procedures, and day-to-day work, can be an enlightening first step in ensuring that your organization functions according to its stated values.

Solidifying this alignment is crucial to ensuring consistent messaging across the organization around what it rewards and punishes and values as a whole. This is a critical element of every high-performing culture. By auditing and refocusing your values, you’re giving your organization direction as you work toward building a culture that embodies its message.

Stuart Farrand – Associate

stuart-farrandEvery year organizations develop “new” initiatives that they plan to roll out in the coming year.  Many focus on new ways to manage the organization or more employee flexibility and autonomy.  These initiatives aim to enhance morale and get better buy-in from the workforce.

Unfortunately, much like most New Year’s resolutions, many of these great ideas fall by the wayside or don’t last very long once they are put into practice.  While there may be some logistics issues or market events that changed the original plan, not following through on these initiatives probably does more to alienate employees than if the organization had done nothing at all.

Regardless of the idea, organizations need to have a solid execution strategy that outlines the timeline, mechanics for implementation, costs, and associated risks (likelihood and impact) before the concept is communicated to employees.

Transparency and follow through are essential to success. If your plan lacks either, you may want to go back to the drawing board before announcing the next big thing.

Start At The Beginning

The biggest takeaway here is to focus on changes that align with your values and your company culture.

Painting the siding of your house doesn’t make it a more livable space for your family. You have to tear down walls, remove your old cabinets, and start rebuilding what you truly want.

Before you make any major changes to the surface of your business, like an office makeover, or a change to employee benefits, make sure it’s in the best interests of your underlying culture.

It takes a lot more work than you may have initially thought, but once you tear down the existing structure and rebuild, you’ll end up with the kind of behavior and culture you want from your people and organization as a whole.

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

Valve Corporation and Spontaneous Orders – Yanis Varoufakis

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

Organizational Strategy: What We Can Learn From Our Veterans

veteran culture

Yesterday, on LinkedIn, I wrote an article highlighting our veterans, and how the US Army values of LDRSHIP (Loyalty, Duty, Respect, Selfless Service, Honor, Integrity and Patriotism) can, and should, apply to your personal and professional lives and the culture of every successful organization.

Ask yourself how your accomplishments or your company’s success would improve exponentially if only two or three of these seven values were a focus and priority of your business every day.

What better way to show your gratitude to our veterans that have given so much, than to epitomize the culture and values that so many of our soldiers lived by during times of sacrifice for our great country; these seven values of LDRSHIP.

We can learn quite a bit from these men and women in uniform. Successfully overcoming adversity through the war game soldiers must play, and the values and strategies they use to win that game, can excel company culture to heights of performance never imagined.

Imagine what a different world we’d live in if we truly incorporated the military’s Loyalty, Duty, Respect, Selfless Service, Honor, Integrity and Patriotism in our business strategies and operations? Or, if we committed to those values more in our daily lives at home with family and friends?

Talking about strategies for organizational change using these seven values is a powerful place from which to launch, learn and lead. And, it has been proven time and again in my own work with clients.

Learning from The Hero’s Journey

It’s not just these embedded cultural values that prepare veterans for success in today’s organizations. It is also their experience with the “Hero’s Journey,” what is termed the “monomyth” as introduced by Joseph Campbell:

“A hero ventures forth from the world of common day into a region of supernatural wonder: fabulous forces are there encountered and a decisive victory is won: the hero comes back from this mysterious adventure with the power to bestow boons on his fellow man.” – Campbell, Joseph. The Hero with a Thousand Faces. Princeton: Princeton University Press, 1949. p.23.

Because of their preparation and commitment to this model, veterans play an ever more important and unique variable in the success as part of, or the head of, any organization.

Let’s dig in a bit more:

In my work, I have come to see first hand that organizational strategy can become more relevant as real world scenarios are applied to its development. The Hero’s Journey model that our soldiers and Defense Department live by ensures that five crucial attributes for organizational strategy are included in the process. These include:

  • PLANNING
  • RESISTANCE
  • TRIALS
  • SUCCESS
  • LESSONS LEARNED

Working with these five attributes creates a strategic planning process that is not linear, but circular and continuous. If you consider these five areas, team members start to think strategically in their own paradox, and not in a one-size-fits-all approach. The story of the Hero’s Journey is a framework that helps customize the process and the resulting solution. But, no step can be omitted in that journey.

Don’t Stop At Planning

Many organizations and leaders think that planning, the first attribute above, is the beginning and the end of their strategy.

However, you cannot reach success (success = achievable and high performing strategy) without trial and tribulation, as our solders and veterans will tell you. Those remaining four steps of the hero’s journey ensure the cycle of trial, failure and trial, failure is repeated until true success is achieved, defined, repeated and institutionalized.

Emerging strategies never intended or expected will come from the trials and lessons learned of failure. Strategy is an evolving, continuous, learning process that follows the hero’s journey.

Veterans In Organizational Change

No one knows this hero’s journey method better than our veterans.  They have been to war, lost small battles, lost battle buddies, or lost understanding of the mission in times of intense stress or crisis. But they continue to move forward to test, adapt and overcome through trial and error. They ultimately define a new strategy or desired outcome of success for the environment they are in, based upon the trials and resistance they are up against.

Our veterans are well suited to be a part of, if not leading, organizational strategy development and accountability in our nation’s agencies and businesses. As we celebrate them today, companies should be seeing Veterans as incredibly attractive, qualified talent fully prepared to fill the leadership pipeline.

Where many organizations may have a void of talent, they should be seen as an absolute resource.

Veterans have embedded the “journey” framework of venturing forward without fear, learning from failure, and making change based on the wisdom of experience. Your organization can learn by studying up on that journey and hiring leaders who have lived it.

I would love to hear your thoughts and specific steps you are taking to embody and live these, or other, values in today’s business environment. Please leave a comment or connect with me on LinkedIn to keep the conversation going!