and it must be intentional.
The second development I've seen is when the singular pursuit of business results comes at the expense of culture, which ends up jeopardizing enduring performance. It's all about how many widgets the company is going to make, and how they're going to make them. They overemphasize efficiency and results—giving culture and people a back seat. Over-indexing on quantitative success will not drive hypergrowth, agility, and loyalty. I know it sounds contrary coming from a former CFO, but you can't sustain your business by managing only to financials.
The third development that often causes culture and strategy to go wrong is office politics and ego. If you don't keep politics and egos in check, bad behaviors emerge, and strategies invariably go awry. Bad behaviors can undermine a culture immediately because they turn people off and shut them down. Instead of being engaged and productive, people take a big step back as they realize they have to play the game. And if an organization rewards politics and ego, these bad behaviors will persist and spread, and have a detrimental effect on culture.
Now more than ever, it's time for leaders in every organization and every industry to put character at the center of everything they do. This character must be based on upstanding values that guide behavior while embracing what has always been good for business—the pursuit of excellence, respect for individuals, and respect for the communities where we do business. The character we exhibit as leaders has a profound influence on the culture of our organizations. And, for hypergrowth, adaptive, customer-centric companies in our era of digital transformation, character-led culture is strategy.
In the chapters that follow, we take a look at exactly how leaders in any organization can define an upstanding character and culture that separate them from the rest of the pack—leading to levels of performance far beyond what you might have ever imagined possible. Now, let's get started.
The Big Nine Values That Drive Great Company Cultures
The MIT Sloan School of Management studied more than one million employee-generated reviews of major companies to determine the cultural values that have the greatest impact on results. Drawing from hundreds of different cultural values, the research effort found that nine stood out as being cited most often. These “Big Nine” cultural values—along with the researchers' definition of each—are:
Agility. Employees can respond quickly and effectively to changes in the marketplace and seize new opportunities. Also known as: flexibility, nimble, fast moving.
Collaboration. Employees work well together within their team and across different parts of the organization. Also known as: teamwork, one company, join forces.
Customer. Employees put customers at the center of everything they do, listening to them and prioritizing their needs. Also known as: customer-focused, deliver to our clients, customer-driven.
Diversity. Company promotes a diverse and inclusive workplace where no one is disadvantaged because of gender, race, ethnicity, sexual orientation, religion, or nationality. Also known as: inclusion, everyone is welcome, celebrate differences.
Execution. Employees are empowered to act, have the resources they need, adhere to process discipline, and are held accountable for results. Also known as: operational excellence, projects managed well, take ownership.
Innovation. Company pioneers novel products, services, technologies, or ways of working. Also known as: cutting edge, leading change, advanced tech.
Integrity. Employees consistently act in an honest and ethical manner. Also known as: do the right thing, be ethical, play by the rules.
Performance. Company rewards results through compensation, informal recognition, and promotions, and deals effectively with underperforming employees. Also known as: meritocratic, recognize achievement, results-driven.
Respect. Employees demonstrate consideration and courtesy for others and treat each other with dignity. Also known as: treat with dignity, courtesy, appreciation for each other.22
Notes
1 1. https://www.zerohedge.com/markets/mortgage-delinquencies-plus-90-days-due-hits-decade-high
2 2. https://www.cnbc.com/2020/08/25/american-airlines-is-cutting-19000-jobs-when-federal-aid-expires-in-october.html
3 3. https://sanfrancisco.cbslocal.com/2020/08/24/more-than-half-of-san-francisco-storefronts-closed-due-to-pandemic/
4 4. https://www.wto.org/english/news_e/pres20_e/pr855_e.htm
5 5. https://blog.perceptyx.com/just-4-percent-of-employees-want-to-return-to-the-office-full-time
6 6. https://www.gallup.com/workplace/232958/bring-best-people-company.aspx
7 7. https://smith.queensu.ca/magazine/issues/winter-2014/features/engaging-employees.php
8 8. https://www.strategyand.pwc.com/global-culture-survey
9 9. https://www.gallup.com/workplace/236351/star-employees-slipping-away.aspx
10 10. https://www.glassdoor.com/research/employee-satisfaction-drivers/
11 11. https://www.glassdoor.com/about-us/workplace-culture-over-salary/
12 12. Richard Sterba, “Character and Resistance,” The Psychoanalytic Quarterly, 20:1 (1951) 72–76, DOI:10.1080/21674086.1951.11925832
