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Nightingale-Conant presents Tom Gegax

10 Steps to a Thriving Culture

By design or by default, every business has a corporate culture. But I suspect most business folks would be hard-pressed to describe theirs in any detail. "Culture" (some prefer "climate") is an umbrella term defined by:

• the conditions and standards under which employees work;
• employees' shared understanding of team dynamics and how they fit in;
• the "tribe's" acceptable behaviors, dress, appearance, and rituals;
• the team's collective personality and identity.

Whether you can describe it or not, you sure as heck know a good one when you see it. In a healthy culture, people:

• look forward to coming to work;
• feel pride in being part of the team;
• consider their co-workers friends;
• are excited by the organization's vision;
• gladly go beyond the call of duty when required;
• are personally satisfied when the team does well;
• are in sync with the organization's operating values;
• believe their work contributes directly to the team's success.

The leader who neglects to grow his organization's culture does so at his peril. Yes, changing an existing culture is difficult, but doable. The pressure of running a company or department can easily siphon attention away from employee-related issues. That it's difficult to stay focused on the satisfaction of employees, however, makes it no less necessary. The less attention paid to people's basic desire to offer value and feel valued, the faster spins the revolving door of turnover. (Of course, enlightened executives realize that without a healthy bottom line, morale may become a moot point.)

The best people — productive, creative, passionate — won't settle for less than an energized, ethical shop abuzz with a spirited team attitude. John Lasseter, executive vice president of Pixar Animation Studios, would agree. Under his direction, the studio's animated blockbusters (Monsters, Inc.; A Bug's Life; the Toy Story films; Finding Nemo) generated worldwide grosses of more than $2.5 billion through 2004. As Newsweek noted:

"With such success, you might think all the competing studios would have plundered Pixar like an unguarded vault — which, technically, it is, since unlike at every other studio nobody besides Lasseter works under contract. So far everyone is staying put. 'A piece of paper won't keep them here,' Lasseter says. 'You want their heart here. So you make them creatively satisfied.' "

Fair or not, your relationships with people under your watch set the tone for the entire staff. My dad and his World War II Army buddies told me, "There were some leaders we'd gladly follow out of a foxhole into battle. But there were others we wanted to shoot in the back." It's no different in the corporate foxholes.

Once your employees are on board with your mission and they're stoked about the vision, with a little more effort, you can crank up the culture and make the place so enjoyable that people wouldn't dream of working anywhere else. Following these 10 steps, the commander in chief can make every day feel like a slice of heaven.

1. Be authentic. Regrettably, employees view bosses through a distorted lens; they see execs as subhuman and devoid of feelings. It gives employees an excuse to downplay their boss's good side and exaggerate his bad. Then, when job frustration hits critical mass, they can feel justified in checking out emotionally. Unfair as it is, too many business owners perpetuate the stereotype. Let go of the notion that signs of emotion or fallibility are unprofessional. My relationships with employees grew healthier when I started admitting mistakes, revealing more of the real me, and being more caring.

2. Hand out all-access passes. As a boss, you've got to recognize that you're a surrogate parent for many employees. Make yourself available to employees when they need you. Give them your full attention, and their appreciation will show up in the simple metrics of productivity and turnover. I always allowed anybody in the company, from a store manager to a tire technician, to meet with me about anything. I did have two stipulations. An employee had to first address the issue with his superiors (assuming it didn't involve family or health troubles). Second, he had to bring me at least one solution for the problem. It was an ironclad rule that everyone come prepared with at least some idea about how to make things better. Our employees knew they would be listened to at the highest level, that their ideas really mattered. This was one of the biggest secrets to our success.

3. Snoop like Columbo. An enlightened executive roots out the truth like a gumshoe. If key details are missing, you can't make the right choice, solve the big problem, or launch the stinger strategy. When employees told me things were fine, I dug deeper: "Anything I can help you with?" "If you ran things, what would you do differently?" Sooner or later, the answers spilled out.

Be relentless. Employees instinctively withhold bad news from the boss. Some try to protect an underperforming colleague, or hide embarrassing details. Other times, the truth remains elusive because no one's connected the dots between problem and root cause. I methodically drill like a west Texas derrick to the core of problems. Beware, though. I sometimes hit nerves instead of veins. But, when everything is out on the table all the time, that's what makes for a healthy culture.

4. Practice the accordion. The best decisions emerge from a process that's neither exclusively top-down (leader calling the shots) nor bottomup (rank-and-file referendum). It's gotta be a collaborative effort I call "the accordion." You can argue that topdown decisions are smarter because upper management commands a broader view of economic, cultural, and mission-related factors. Yet, management is too often out to lunch on the down-and-dirty details, if only because employees hate delivering bad news. The remedy: raw intel, gathered from as many sources as possible. I'd tell people, "If something needs to be said, don't minimize it or dramatize it. Just flat out say it."

This common military axiom describes it best: "Battle plans never survive contact with the enemy." Without a constant feedback loop from the front, plans hatched by the top can be comically naïve or fatally flawed.

5. Eliminate obstacles. My first day at Shell Oil in Chicago was electrifying. I was 21 and ready to take on the world. I wanted just one word to come to mind when my boss thought of my performance: spectacular. I never lost the desire to do great work, but, bit by bit, a bloated bureaucracy and stifling daily routines blunted my gung-ho edge. Naïve as I was, it was obvious to me that a company's procedures and systems must be userfriendly. I also learned not to jerk people from one can't-wait-anotherminute project to the next, and not to call a meeting unless I absolutely had to. People can't soar when they're bogged down in systemic sludge.

6. Keep people in the loop. One reason I left Shell Oil was that I didn't know whether I was making a difference. Every nugget of information was closely held. That didn't make sense to me. Leaders at all levels need real numbers to make smart decisions and inspire people to hit their targets.

All employees should be briefed on the enterprise's performance and plans. All department heads should know the revenue and expense flow of every unit. Transparency inspires loyalty. As entrepreneurial icon Sam Walton pointed out:

"Communicate everything you possibly can to your [employees]. The more they know, the more they'll understand. The more they understand, the more they'll care. Once they care, there's no stopping them."

7. Talk it through. Larry, a colleague of mine, wanted to thaw the tension at his small Minneapolis packaging firm. "I just don't understand why people here don't get it," he told me. "I tell them what to do, but they don't seem capable of following simple instructions." After talking to his employees, I broke it to Larry that he was the one who didn't get it. I was told that Larry often snapped, "Because I said so," or "Just do it, okay?" when his methods were questioned. "That just doesn't fly with people," I told Larry. "They'll tune you out and do things their own way." Be direct, I said. Ask the employee what she would do differently when she disagrees with your decision. If her suggestion makes sense, tell her you'll consider it and get back to her. If it's impractical, explain why. If she's still upset, say something like, "I know you don't agree, but I think it's the right thing, so I hope you'll support it for the good of the company." Even if she doesn't agree with you, it's more likely she'll accept your decision if you weigh her input and explain your rationale.

8. View mistakes as opportunities. In the heat of frustration, it may be tempting to rub employees' noses in their mistakes. I used to do just that. It should be obvious, but there's a whiff of sadism in shaming somebody who is already beating herself up. Besides, morale and confidence spiral downward when the boss chews you out, especially if it's done in a mean-spirited way. Enlightened executives pose thoughtful questions until the light of understanding flicks on. Here's how to use question-based coaching to convert a mistake into a teachable moment:

You: So, John, how'd you feel when you heard we lost that order because the form was filled out wrong?
Employee: Pretty lousy.
You: Yeah, it's tough. This has happened before, hasn't it?
Employee: Yeah, a few weeks ago.
You: What happened then?
Employee: I dunno. I guess I was just rushing and got a little careless.
You: Same thing this time?
Employee: I guess so.
You: Well, let's look at this a minute. If you find yourself rushing again, what will you do differently?
Employee: I guess I'd tell myself to slow down and get every detail right because one wrong digit can really screw things up.
You: Yeah, your job demands dotting all the i's and crossing all the t's, doesn't it? Do me a favor and grade yourself on attention to detail.
Employee: Probably C-minus.
You: Okay, that's honest. And where would you put your desire to get better? Low, medium, high?
Employee: High, definitely high.
You: That's what I was hoping. Now, are you willing to put in the effort to upgrade your skills and get organized?
Employee: Absolutely.
You: Excellent. Let's put our heads together on an action plan to make it happen.

Partnering with an employee creates solutions both parties own, as opposed to one side feeling lectured to. Partnering takes a little extra time, but it preserves dignity and helps lessons sink in. And when employees use their own noggins to find solutions, they're more likely to execute them with gusto. It's human nature. People want to expand their capacities. They want those "Aha!" moments.

Of course, sometimes action speaks for itself. The story goes that Thomas Edison and his crew worked 24 hours straight to complete the first working light bulb. Exhausted, Edison placed the precious orb in the hands of his young assistant to carry upstairs. The nervous boy was shaking so badly that he dropped the bulb on the way up. The team spent another 24 hours making a second bulb. When it came time to carry it upstairs, Edison smiled and again handed it to the boy. Confidence restored, the kid ferried the bulb upstairs without incident. The simple gesture earned Edison the boy's loyalty for a lifetime.

9. Make amends. For some reason, the words "I'm sorry" are kryptonite to leaders. Leaders often hide behind the thought, "I sign his paychecks. He'll get over it." But "I'm sorry" are two of the most powerful words in the leadership lexicon. They're a tonic for employees who feel wronged and cling fiercely to their resentment. Only a heartfelt apology can cleanse the hurt and repair the relationship. We all make mistakes, but not owning up to them ranks among the biggest mistakes of all.

10. Express gratitude. Few things are appreciated or inspire deeper loyalty like the balm of a heartfelt thank-you for a job well done. Among the ways I thanked my execs was writing annual birthday notes — like this one to our treasurer, Jim Wolf:

"Jim, happy birthday. Thanks again for your dedication to our team. Your contribution is very important: lowering interest rates, critical budgets and projections, handling cash, and profit improvement team, among a few biggies. You do all this with a sense of fun as well as discipline and focus — a great combination. Great attitude. Thanks and take care, Tom."

Lesser executives prattle on about teamwork, but few walk their talk. Yes, individual expression is highly prized and indispensable, but getting everyone on the same page is equally important. This approach to team-building transforms a collection of individuals into a collective "team ego" — which will flow into everything your team does, from executive-team meetings to the way customers are treated.

Saturate the environment. Your office should pulsate with team-building. Anyone in a position to coach should be trained to model team-oriented traits and preach that every employee's success depends on the sum of their parts. Egomaniacs should stick out like cutoffs at a cocktail party. Now, that doesn't mean you want everyone to think alike. In fact, it's important they don't. General George S. Patton said it best: "If everybody's thinking alike, somebody isn't thinking."

Talk the walk. Talk isn't always cheap. Ask your people to call their colleagues "teammates." It reinforces the Three Musketeers motto, "One for all and all for one." It also makes a world of difference when your managers tell their people, "Here's what the team needs," rather than, "Here's what I need." When an outsider knocks your company, take it personally — as in taking personal responsibility if fixes are in order. After all, a company isn't a corporate seal on a piece of paper, it's a team of people. And all those people have a common goal: making the organization better than it was yesterday.

Hire team players. Ask job candidates questions like, "Where do you rank as a team player on a scale of 1 to 10?" and "When do you find you are not a team player?" Invariably, they should leave the interview with your mission statement plastered on the billboard of their mind, and the message should be clear: lone wolves need not apply.

Recognize and reward it. If you don't actively promote teamwork, you may as well endorse selfishness. Bonuses should ride on achieving team goals. At Tires Plus, we even built a baseball-style "farm system" to reward skilled coaches. For instance, if Store A needed an assistant manager, and Store B had a great candidate, then Store A had to "draft" the up-and-comer. The manager who tutored the hot prospect was owed something. So Store A had to pay $3,000 to Store B for the honor of picking up the future assistant manager. That fee in turn pumped up Store B's profits, added to the bonus kitty split among staff, and encouraged the team to continue to develop strong talent.

Embody it. You can hold a pep rally seven days a week, but it's merely platitudes and pom-poms unless leaders demonstrate the highest standards of teamwork. Lesser managers are always about me, me, me instead of we, we, we. As you shed your seat-of-the-pants style, you will share the sense of ownership and you will be less inclined to use your "veto."

It doesn't matter how many hours a team member puts in if the quality of hours is low. Similarly, you will have some team members who can do in hours what most can only do in days. Level the playing field and judge everyone by OUTPUT. But, make sure that output is measurable and communicated.

Expect greatness. Don't worry about setting expectations just beyond the moon. Expecting people to give their best will pull the best out of them. But watch out. Setting high standards can actually undermine productivity and morale unless individual expectations are clearly defined in relation to team goals and the players appreciate how the two are related. Careful strategic planning will establish a clear, logical, measurable relationship between organizational objectives and individual goals.

Accommodate family priorities. Contrary to seat-of-thepants mythology, putting family first in a systems-disciplined, achievement-oriented environment will actually enhance productivity, not diminish it. Maybe parents don't need to take in every single soccer game, dance line performance, or spelling bee, but a high attendance rate is important to them and to their child. Keep their bodies at work during these events and you'll lose their hearts and minds.

Seat-of-the-pants managers typically don't connect the dots between how they treat employees' families and those employees' loyalty and performance. I'll never forget the time my wife and I were visiting my buddy and Shell Oil colleague Art Davis in Dayton, Ohio, over 30 years ago. The phone rang and Art's wife went in the kitchen to answer it. Eight seconds later she was back. It was Art's boss. After Art left the room she said, "That jerk, he doesn't even bother to say hello. Just, 'Is Art there?'" Now really, how hard is it to say, "Hi, Judy, this is Bill. How are you?" Think about it. A spouse has more influence over your employee than anyone else. I wasn't surprised when, less than a year later, Art told me he had found another job.

Trust employees to deliver. Quality employees want to be trusted, and they want balanced lives. That's why Best Buy designed ROWE (Results-Oriented Work Environment) to attract top-notch candidates. The program, which was still being rolled out as 2005 began, goes light-years beyond typical flexibility benefits like condensed workweeks and telecommuting. People are free to work when and where they want. All that matters is results — did the job get done? Granted, this approach isn't a cure-all, and it's probably not doable at many organizations, but surveys and anecdotal evidence suggest that appreciative Best Buy employees are living up to their end of the bargain.

© 2008 Nightingale-Conant, Inc. All rights reserved.