Smartest Person

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“He doesn’t fit the culture,” Ruben explained. “Jason’s okay, knows the technical side of the business, but he doesn’t fit the culture.”

“What do you mean, he doesn’t fit the culture?” I asked.

“He doesn’t fit the team,” Ruben replied. “Our teams work together, support each other, help each other. If someone asks Jason a question, he snaps the answer, he treats the other person like they are stupid. And, they just want to know the answer to the question.”

“What does Jason believe about the team?”

“What do you mean, believe about the team?” Ruben looked puzzled.

“You said this was a culture problem,” I nodded. “Culture is a set of beliefs that drive behavior, for better or worse. Ultimately, those behaviors are repeated and become an unwritten set of rules that guide the team in the way they work together. That’s culture. But, it all starts with what we believe, what you believe, as the manager, what Jason believes as a team member. If you want to change the behavior, you have to change the context. What we believe, what Jason believes, creates the context and drives his behavior. What does Jason believe about the team?”

Ruben looked up into his brain, “Jason believes he is smarter than anyone else on the team. Jason believes that he could do all the work better than anyone else on the team. Jason believes the other people on the team slow him down. When someone asks a question, it proves Jason is right, that he is the smartest person on the team and he wants everyone to know it.”

Does the Feeling Create the Structure?

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“So, you want your team to feel like a family, at least an extended family?” I asked.

Andre was thoughtful. “You have heard the expression, familiarity breeds contempt? That is the behavior I see. Petty grievances. Subtle discord. You would think that, as a family, they would get along better and, in turn, be more productive. I want them to work together, collaborate, support each other, you know, real teamwork.”

“All, noble ideas. But, could there be a paradox? Could it be, that effective group collaboration, teamwork, does not stem from a feeling of family, but rather a clear recognition of individual team members, each with individual accountability in clearly defined working relationships? Could it be structure that creates the feeling, not the feeling that creates the structure?”

It’s Family Feeling

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“The biggest problem I have,” Andre complained, “is getting my people to work together. I want them to be like a family. I want them to feel like they belong to a tribe, you know, an extended family.”

“Oh, really,” I looked surprised. “It is a noble feeling to impart to a group of people, to get them to feel like they are part of something bigger than themselves. So, what seems to be the problem in getting them to work together?”

“There always seems to be petty bickering between the personalities. It’s not overt passive-aggressive behavior, but the conversations that end up in my office are petty transgressions. Someone borrowed a stapler and didn’t return it. Someone took a snack out of the company refrigerator. Someone had a bright idea that the group ignored or made fun of. Someone got passed over on a new project. Someone got passed over for a promotion.”

“So, what do you think the problem is?” I asked.

“I think it’s the culture of the group,” Andre nodded.

“And, who sets the culture?” I prompted.

“Ultimately, I set the culture,” he thought out loud. “Funny, I want the group to feel like a family, an extended family, but I end up with sibling rivalry.”

Pizza, Pizza

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“I guess I just don’t like the characterization that most of what I do, as a manager is manipulation. I always thought of myself as a motivational leader,” Helen explained.

“When you think about motivation, do you think it is something that exists inside of a person or outside?” I asked.

“Well, inside. Motivation has to come from the inside,” she replied.

“And, manipulation, inside or outside?”

She looked at me with squinting pushback.  “Manipulation would come from the outside.”.

“You may be looking at the difference as good and bad, but manipulation isn’t necessarily bad,” I said. “Let’s say you need the team to stay after for a half hour and load the last truck of the day. And if they do that, you promise a pizza lunch. Motivation or manipulation?”

“It’s outside, external, manipulation,” Helen answered.

“So, is the pizza lunch good or bad?” I wanted to know.

“Neither, really, kind of neutral.”

“Manipulation isn’t necessarily bad, but it’s different than motivation. With manipulation, it is dependent on the reward or punishment. Remove the reward and the behavior goes away, it doesn’t last very long. And, the proximity of the manager, you most likely will have to be there and pitch in. If you leave before the truck is loaded, they might leave too. So, it doesn’t last and you have to be there.”

“And, motivation?” Helen answered her own question. “Motivation doesn’t depend on an external reward and the behavior happens whether the manager is there or not.”

Not Our Intent, But It’s What Happens

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Helen’s face dropped. Her smile disappeared.

“Sounds like manipulation,” I said.

“But, but, what do you mean?” she gasped, not in desperation, but surprise.

“I mean, most of the things we do, as managers, fall in line with manipulation. We create expectations of performance, we get the performance, the team member gets a reward. Or more clearly, we create expectations, if we don’t get the performance, the team member gets reprimanded. Either way you look at it, most of what we do as managers, is manipulation.”

They Admitted Their Pizza Was Terrible

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How did the joke go? When you finished eating the pizza, you could eat the box, because it tasted about the same. Unfortunately for Domino’s, customers weren’t joking. By 2008, customer research confirmed what many people already believed.

Patrick Doyle arrived as CEO and admitted as much about the cardboard box. They used real customer testimonials to support the claim about the cardboard. This story isn’t about the remaking of a pizza recipe. The real story is what did Patrick Doyle have to believe to publicly admit the findings of their internal customer surveys?

Customers didn’t suddenly trust Domino’s because the pizza improved. They trusted Domino’s because the company admitted it had a problem. The new recipe simply made that honesty believable.

Translate that shift in management belief to observable behaviors.

  • Publicly acknowledged the problem.
  • Changed the recipe.
  • Invited criticism instead of hiding from it.
  • Invited customers to judge their pizza again.

Most companies believe their job is to protect the brand. Patrick Doyle appeared to believe something different. “Protect the customer’s trust.”

What would your company have to admit before customers trusted you more?

But We Don’t Sell Tires

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No one knows whether it actually happened. The story goes that a customer walked into a Nordstrom store carrying a set of tires and asked for a refund. The employee refunded the purchase.

There’s only one problem.

Nordstrom didn’t sell tires. This story has been told for decades. It may be true. It may be an urban legend. But that isn’t what makes it interesting.

The story is real. What would management have to believe for this story to become part of the company’s identity?

Most companies answer customer service questions with policies.

  • You must have a receipt.
  • The receipt must be dated within thirty days of purchase.
  • You must pay a restocking fee.

Policies tell employees what they may do. Stories tell employees what they should do. The Nordstrom tire story isn’t really about tires. It’s about trust, something invisible. It creates and communicates.

  • The lifetime value of a customer is greater than the cost of resolving a single complaint.
  • Removing a customer’s fear is more valuable than protecting against every possible abuse.
  • Remarkable service becomes remarkable marketing because customers tell stories.

Whether the tire story actually happened doesn’t matter anymore. The story survives because employees continue to hear it. Customers continue to repeat it. It is now part of the company’s customs and rituals. That’s how culture works.

Policies are written in manuals. Beliefs are written in stories.

So, here’s the question. What stories do people tell about your company when you’re not in the room? Those stories, not your mission statement are often the clearest expression of your culture.

What Management Reinforces, Gets Repeated

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Every behavior begins with a belief. Every system begins with an assumption about the way the world works.  The interesting question isn’t how the Wells Fargo scandal happened, or even why it happened. The more interesting question is: What did management have to believe for those behaviors to make sense?

The Behaviors
Between 2011 and 2015, employees at Wells Fargo opened millions of deposit and credit card accounts that customers had not authorized in order to meet aggressive sales goals. Wells Fargo acknowledged that at least 2 million accounts may have been unauthorized, and later reviews increased that estimate to approximately 3.5 million. Regulators concluded that compensation incentives and sales targets contributed to the misconduct.

The Consequences of Reality
On September 8, 2016, the CFPB, OCC, and the Los Angeles City Attorney announced a combined $185 million settlement against Wells Fargo. More than 5,000 employees were terminated over the sales-practices scandal, and CEO John Stumpf resigned shortly afterward amid intense public and congressional scrutiny. In 2018, the Federal Reserve imposed an unprecedented asset cap on Wells Fargo until governance and risk management deficiencies were corrected. That restriction remained in place until 2025, illustrating how long cultural failures can affect an organization.

Customs and Rituals
None of us were in the room, so we should resist inventing conversations that may not have occurred. What we do know is that sales goals and incentive compensation established the rules of the game. Employees rarely invent the scorecard. They simply learn how to win the game management designs. When promotions, recognition, and compensation reinforce one behavior, that behavior is repeated.

Over time, those repeated behaviors become customs and rituals. Those rituals eventually reinforce the original management belief, that success is measured by the scorecard. Whether that belief is intentional or accidental, culture quietly shapes itself around what management consistently rewards.

Start With Behaviors

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From the Ask Tom mailbag –

Question:
In your book Premeditated Culture, you focus on four elements of a defined culture cycle. I was always taught that the first step for intentional culture is to focus on and define our belief system. That’s where mission and vision statements come from. You seem to jump right to behaviors.

Response:
Beliefs are invisible, assumptions are invisible, the way we see the world is invisible. Even people inside an organization often struggle to describe the beliefs that actually drive their decisions. They can usually recite the mission statement hanging in the lobby, but that’s not necessarily the belief system that governs their work.

Behavior is different.  Behavior is observable.  I don’t spend much time listening to what organizations say about themselves. I watch what they do.

But even behaviors can be misleading. Some behaviors survive. Others disappear because reality has a way of sorting good ideas from bad ones. The consequences of our decisions determine which behaviors become habits and which are abandoned.

The behaviors that survive become customs and rituals. We repeat them. We tell stories about them. We celebrate them. We teach them to new employees.

Eventually those rituals reinforce the very beliefs that produced the behaviors in the first place.

The culture cycle begins with beliefs.  But culture analysis begins with behaviors.

If you want to understand an organization’s culture, don’t start with its mission statement.  Start by watching what management consistently rewards, tolerates, and repeats.

Everything else follows.

IKEA and Their Furniture (Store)

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Strategic decisions drive the culture. Beliefs drive behavior.

Most retailers try to make shopping easier.  IKEA moves most of the work onto the customer.  Yet, customers see this as a fair trade-off .

Combine  American sensitivity to price with European minimalism and you have an IKEA store. IKEA created a strategy that reduced the cost structure that customers saw as a reasonable value proposition. Entering the store, customers are handed a pick ticket used by the warehouse to pull the selected item from inventory. The journey through the store, in a maze of lines on the floor, requires the customer to consider featured items in a process to build the purchase ticket. The path isn’t simply about navigation. It is designed to expose customers to ideas they weren’t planning to buy.

Manicured assembly instructions complete the trade, customers are willing to self-assemble in exchange for a more reasonable price. The instructions are part of a carefully flat packed item designed to fit inside most every American automobile. Delivery may be available, but the strategy is to get it all in the customer vehicle and get them on their way. IKEA intentionally leaves the final steps of manufacturing and delivery to the customer. In return, the customer receives a lower price.  Assembly and last mile logistics are not part of the IKEA business model.

IKEA isn’t successful because it sells inexpensive furniture.  It succeeds because management believed customers would willingly trade convenience for value.  The store, the warehouse, the flat-pack box, the assembly instructions—even the maze through the showroom—are simply observable behaviors flowing from that single belief.

Two cultures, minimalism and price sensitivity, meet inside of a business model that endures. It’s the way we see the world.