Greg Harmeyer – Co-Founder and CEO We all know Peter Drucker’s adage that “culture eats strategy for breakfast.” Every organization has a strategy. For most organizations, that strategy focuses on how to grow and create more value. Strategy is akin to personal ambition — it has to do with goals, objectives, the things we have to do to make that happen.
Culture by contrast is akin to our personal character. It has to do with how we go about doing those things, what we value, how we treat people, what ethical and moral principles we choose to live by. Culture is the manifestation of leaders’ beliefs about how people should work together to get things done. Strategy has to do with what we work on. Culture is about how we work. While culture is inherently central to strategy and has enormous impact on our strategic work, culture is important for much deeper reasons.
Much like our own personal character is a reflection of the quality of our living, culture is a reflection of the quality of our organization’s existence. We’ve heard “it’s not whether you win or lose but how you play the game.” Strategy is about winning and losing — culture is about how we play the game.
If we really care about the impact we make, the integrity and character with which we conduct ourselves is central, paramount, even more important than maximizing our profits or winning in our industries. That’s a rare message.
The reality is if we take the mindset that how we show up and compete is more important than whether or not we win or lose, we begin to build an organization differently. We begin to build a loving organization and an organization that is designed for the long-term. We may have short-term losses, but we create a resilient organization that attracts people. We build a culture people want to be part of because it is intrinsically rewarding and motivating.
When culture has not been intentionally designed, it becomes a compilation of mixed decisions over many years of changes. People are left to decide for themselves what the culture is or is supposed to be.
In the end, it ends up, for better or worse, simply being how people treat each other based on what they believe the organization truly values. Unraveling this is possible. It is not a project and it is not an event any more than building your own personal character is a one-time thing. Building culture is systematic and culture can be intentionally designed.
So where do you start? A healthy culture is one that continually evolves and has the humility to recognize that there are always shortcomings. One thing is clear, there is no one formula, no “right” culture. However, here are three pillars of any healthy culture that can guide your way.
Clarity comes through the repeated articulation of beliefs — values, principles, and shared mindsets. The most common trap leaders and organizations fall into is saying things they don’t honestly believe. If the culture cares about competitiveness, say that; if it’s driven by individual performance, be clear about that; if the work expectations are very intense work weeks, communicate that. The worst thing for a culture is when you say one thing but actually believe or practice another. Being open about the challenges of a culture is in itself a loving thing and in everyone’s best interest.
People feel culture. They feel it in the form of moments and experiences that are produced by the people around them. Those experiences, while produced by people, are a function of systems — recruiting systems, development systems, operating systems, leadership systems, rewards systems. All of these play a role in what people feel and experience and all have to be intentionally created to align with the desired experiences. People create the culture. But the systems have to support the culture you want them to create.
When there is great clarity and great consistency, an outcome is increased trust. Trust is the essential common ingredient in any healthy culture. Organizations simply cannot have enough of it. Next to capital itself, it is the most critical asset an organization possesses.
Culture is something we experience. Clarity, consistency, trust, the things we believe, how we operate, all come together through lived experiences. Something I always try to emphasize with each new hire is you create our culture. The people around you are causing you to feel what you currently feel, and you will do it for others in the future. Culture is something that is experienced. The greatest manifestation of culture is how people treat each other on a day-to-day basis. These three pillars are critical in bringing that to life.
Want to read more? This article is from Greg’s book, “Impact with Love: Building Business for a Better World.” Pick up a copy today.