Culture is king. Think about that for a moment. Think back on all the jobs you've ever worked, successes and failures. When it all boils down to it, a strong culture is probably the most influential factor in the success or failure of an organization.
Case in point: If you've been paying any attention at all to the business news lately, you'll see that Ford and GM are scrambling to remain competitive after taking some serious losses in the midst of one of the biggest economic booms we've had in a while. Why do you suppose this is? The truth is trickling out, particularily from Ford which is now touting a "new culture" initiative that is attempting to make them more innovative and attractive to the consumer. I encourage everyone to look at what they are going through and analyze why this is so. Here's my take:
Currently I'm enrolled in an Operations Management MBA class. In this class we focus on how to improve on the bottom line of a business from an operational standpoint. What this means is that raising prices isn't the focus to make more money, but reducing the costs of doing business. In general, there are two specific ways you can go about this: technology and process. As IT professionals, we are all aware of how technology can help improve the bottom line through things like automation, reducing errors, etc. The whole concept of Just In Time inventory systems is built on the advanced telecommunications we have available today. Process on the other hand may involve technology at some points, but is really focused on the steps and conditions that occur from start to finish and how things can be arranged more efficiently and less costly.
I can hear some of you saying "well duh, but what does this have to do with culture?". Simply put:
- You can design the best process in the world, implement the latest technology, but if you can't get people to adopt it and use it properly it will fail.
Think on this for a moment. Have you ever created a software package that is "better" than an existing package and had people resist the change? Processes and technologies are tools, and without people willing and able to use the tools properly the benefits will not be realized. It's so simple, yet so many companies just don't seem to get it. There is a natural resistance to change in many people and if the culture doesn't help reduce the impact of this it can cause a lot of pain. In Ford's case, they've rolled through 3 CEOs in recent years and have very little to show for it. You can either determine that all three of these CEOs were boneheads, or that something in the organization prevented them from making the positive impact they wanted made. Repeated failures by multiple people speaks to me that the problem likely lies in the organization and culture, which not surprisingly was the message in the multiple superbowl ads Ford aired.
Symptoms of a Failing Culture
Here's a few of them:
Information Hoarding- Information hoarding occurs when people in an organization fear losing control over their critical data or through competition with other teams are trying to seize power. The fear of losing control usually rises from a lack of trust in other departments or teams. That they will cause harm to the holder. Open communication requires trust and faith that information when shared will not come back to haunt the granter. The other case of competition and seizing power can be tied right back to the upper management that allows such a condition / perception to exist in the first place.
Devaluation Syndrome- People generally need to feel valued and appreciated in their work. When companies take their workers for granted, stop respecting the work/life balance, and don't solicit feedback it tends to make them feel like "another butt in the seat". A big cause of this during times of change is the solicitation of feedback. Oftentimes you see companies bringing in teams of high priced consultants who impose their will upon existing teams. This can cause feelings of resentment as employees may feel like management does not trust or value their opinion on how to make things better. I tend to be a big fan of getting people involved, even if only peripherally in changes that have a big impact on their job whenever possible.
Shooting the Messenger- The earlier management is made aware of problems, the more cost effective it will be to fix them (or eliminate a bad process faster). If workers feel like they can't be honest about the reality of what is going on internally, they will stay close-mouthed and management will not be aware of the issues occuring until it all blows up. Obviously clinging to a losing process for longer than necessary is not good for the stress level of the workers or the bottom line of the company.
Successful Cultures Need the Following:
Communication. Open communication, free of politics and repercussions for reporting the truth. How does a software project end up a year late? One day at a time. If your teams are sweeping problems under the rug because they are "small" or because they can "catch up later" over time it will pile up to a point where it will bite the organization. Then the crap flows downhill as the executive champion takes heat for going over budget, the manager of the project takes heat for not raising the alarm earlier, and ultimately the workers suffer when the project ends up being outsourced or cancelled.
Rewarding positive behavior. Positive reinforcement is far more effective than negative reinforcement particularily when it comes to the creative thinking positions like development. When your mind is free of negative emotions you can focus on the task at hand much more than when in the back of your head you are dwelling on negative feelings which ultimately demotivates the worker. I have seen coworkers completely frozen by depression, anger, and anxiety. It's not a pretty sight.
Empowerment- very little is more motivating than being in control of your own projects. It is one thing to fail at something that doesn't have your name on it and another thing altogether to fail at someone else's initiative. It is far too easy when not being empowered to shift the blame for how things are going to a 3rd party instead of inward. The teams in your organization are experts in their domains. While management's goal is to keep the big picture in focus and make sure processes move effectively through the organization the granular details within the teams are often best influenced by the people actually doing the work. Setting aggressive goals and rewarding employee innovation is a big key to productivity and job satisfaction. Just be sure to be agressive but reasonable and appreciative or you'll end up with the title of company slave driver!