Tag Archives: culture

Parlor Games

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This scene was cut from my new book Premeditated Culture. Sometimes the best stuff is on the cutting room floor.
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Samuel Pierce felt it was his duty, as Chairman of the Board, to make sure the new CEO was grounded in reality. “Catherine, I just want to make sure that you are up to the challenges you face as the new CEO, and that you are not being too idealistic.”

Catherine Nibali was chosen as the successor CEO to a company in trouble.

“You will have the union to deal with,” Samuel warned. “I know it was here when you arrived, but it is here nonetheless.”

“That’s true,” Catherine agreed. “The existence of a union is only one indicator of the deeply ingrained misconceptions this company drifted into. The people systems were based on false assumptions of managerial leadership. It’s no wonder the union was able to take hold. But, Samuel, there is more. The union is only the tip of the iceberg.”

“With all due respect,” Samuel interrupted. “Your predecessor, Al Ripley, tried a number of things. He re-engineered many of the work processes, he allowed group dynamic exercises, ropes courses, results based incentives, group bonuses.”

It was Catherine’s turn to interrupt. “Exactly,” she stared directly at Samuel. “Parlor games. Parlor games that, at best, might create a small burst of productivity, but in the long run, laid the ground for the union and shaped a culture that provokes disruptive behavior. We stand for what we tolerate.”
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A Prediction Ten Years Ago

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I originally published this conversation in 2015, ten years before SWA started to charge for luggage.
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“But, we have an airline to run,” Samuel continued to object. “As chairman of the board, it is my primary responsibility to make sure we have the right person at the helm. It is not my responsibility to micro-manage you, meddle in the way you run things. But, the way you run things makes me wonder if we have the right person at the helm.”

“Look, Sam,” Catherine replied, “we can squeeze the legroom, rearrange the seating on the planes. We can start charging for checked baggage. We can add a service fee if someone wants a soda. But that is not our problem.”

Catherine looked intently at Sam, sitting at the head of the boardroom. In the periphery, she could see the logos of the other companies in the portfolio. Outbound Air was the company in trouble and she had been selected to turn it profitable. She continued.

“Sam, we have close to a thousand employees now. They work 40 hours per week. Economically, they depend on us. Our compensation system and job opportunities directly impact how they live, now, next week and next year. Their self-esteem, what they achieve in life, in large part, depends on the role they play for us. How we set expectations, how we define their working relationships, how we evaluate their effectiveness, all, have direct impact on their contribution. They come home at night, frustrated or satisfied based on how things went that day. The way we design the environment of their work has way more impact on our bottom line than any fees we may charge for luggage.”

Nobody Dies

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“I don’t know why my team is behaving this way,” Riley complained. “I know we drive our people hard, and I know we expect a lot from them, but they knew that when they signed up for the job. We are a very intense organization.”

“How are they behaving?” I wanted to know.

“You can see them dragging into a meeting. Smiles are few and far between. It’s like they need a vacation really bad. Bordering on burn-out. I know we expect them to be responsive on their smart-phones, even after hours, but we are in the service business. We don’t know when our customers are going to call, or some project is going to go sideways.”

“So, in addition to working a normal day-shift, they are on-call after hours?”

Riley nodded. “Yes, but they get on-call pay, even if nothing happens. And we rotate that, so it’s not like it’s every day.”

“So, what is causing the fatigue,” I asked.

“I don’t know. It’s just that we are intense. If we relax, details get missed. And, missed details can turn into real problems. We have to keep our guard up.”

“And, if you keep your guard up and no details are missed, what happens?”

Riley had to stop and think. “Nothing special. Things go smooth, no one panics, but it’s not like we win the Super Bowl.”

“When your team does a really good job, it’s nothing special. So, who appreciates it, when they do a really good job?”

“No one really,” Riley admitted. “A really good job just means that no one is upset, mostly the customer.”

“Kind of like running a nuclear power plant,” I said. “If we do our job well, everyone gets electricity, the reactor doesn’t melt down and nobody dies.”

Fix Accountability

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From the Ask Tom mailbag –

Question:
You seem to think that when the manager is held accountable for the output of the team, it’s a game-changer. You seem to think this one idea has a significant impact on morale.

Response:
Mindset drives behavior. This is a central premise to culture. What we believe, the way we see the world, drives behavior.

When a manager believes the team is accountable for their own output, it creates a punitive, blaming mindset on the part of the manager. I often hear the refrain from one manager to another, “Well, did you hold them accountable?”

And I have to ask, “Accountable for what? And just what managerial behavior is involved in holding them accountable?”

Is it a matter of reprimand, jumping up and down and screaming? Is it a matter of volume, frequency? If I told you once, I told you a thousand times. At that point, I am convinced that I am talking to a manager who has no children.

Managers who engage in this behavior have a direct negative impact on team morale. Response is predictably fight, flight, freeze or appease.

But, when the manager is accountable for the output of the team, everything changes. A manager accountable for the output of the team will –

  • Take extreme care in the selection of who? is assigned to the project.
  • Will take extreme care in the training of team members assigned to the project.
  • Will take extreme care in the work instructions for the project.
  • Will take care to monitor the progress of work on the project.
  • Will take care in the coaching of team members who may struggle in connection with the project.

Why? Because the manager is accountable for the output of the team. The attitude, the mindset, moves the manager from blaming behavior to caring behavior. If this becomes the mindset of all the managers, the entire organization’s culture changes. We don’t need sensitivity training, or communication seminars. We just need to fix accountability with the manager.

It’s What You Believe

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“What do you mean, change the context?” Ruben asked.

“Jason is the smartest guy in the room, or, at least, he wants you to think that,” I nodded. “Right now, his attitude is counterproductive. So, change the context. You do some internal training, from time to time?”

“Yes, but that’s my job,” Ruben assured me.

“No, that’s what you believe. You believe that’s your job. What if you believed it was Jason’s job?”

“But, our internal training is usually about something new, not like we have a training manual, I have to figure how a process works and then determine the best way to teach it,” he protested.

“Sounds like you need the smartest guy in the room. What if you believed it was Jason’s job to teach? Change the context, behavior follows.”

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.”

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.

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.