Values matter: Why corporate culture is more than just a vibe
Corporate culture: What is it and why does it matter? Noted management consultant Pete Drucker is often credited with saying, “Culture eats strategy for breakfast.” That makes culture seem pretty important. But in most companies where I have consulted, culture is this vague, fuzzy set of principles — one of those things you create because you are supposed to, not because it really makes a difference.
Common words in statements about corporate values include things like integrity, innovation, accountability and teamwork. Well, duh! Who wants to work in a company that’s dishonest, backward-facing, irresponsible and highly conflicted? How do those values, and the culture they are supposed to drive, actually have any impact on how people do their work?
Corporate culture as a tool for finding solutions
A recent article in the Harvard Business Review addressed the import and impact of values and culture. The author, Erin Meyer, came up with a proposition I found to be brilliant. Meyer proposed that to be useful, the corporate culture must provide guidance about how to resolve ethical dilemmas in the workplace. For example, Meyer presented the situation where an employee comes to you with an innovative proposal. She has explored it in detail and is confident it will be profitable. But you’re pretty sure it will fail. What should you do?
If your company has defined its culture with vague statements about quality, the leaders won’t have clear guidance. There will probably be a wide variation in how they would handle this situation. But if the company has developed clear behavioral guidelines, you’ll be in much better shape. If your culture emphasizes error prevention, then you should veto the proposal. But if you’re aiming to build an innovative culture, you should probably give her the green light.
It’s important to identify the kinds of dilemmas that leaders in your company are likely to face. Then pressure-test your values statements — do they provide guidance or not? This will help to shape the behavior of leaders and their teams and provide a template for what kinds of people you hire.
A Fortune 500 company uses values to guide culture
My favorite approach to culture comes from Best Buy, a former client of mine. Here are their stated company values:
Have fun while being the best.
Learn from challenge and change.
Show respect, humility and integrity.
Unleash the power of our people.
The leaders have promoted these same values for over 20 years. They have used them in annual performance evaluations and promotion decisions. And if you think back to the dilemma I described earlier in this article, you can see how the Best Buy values would provide guidance for resolving that dilemma.
Culture eats strategy for breakfast. Make sure your culture has that kind of power and relevance.
If you’d like a thought partner for how to build a great culture, get in touch with me at ggolden@gailgoldenconsulting.com.
