You’re swimming in culture right now. You just can’t see it. And if you can’t see it, you definitely can’t control it.
“Culture eats strategy for breakfast.”
- Peter Drucker (who understood that all the brilliant plans in the world mean nothing if your culture sucks)
Key Takeaways:
- Your organization has a culture whether you designed it or not (accidental cultures are usually toxic).
- Leaders must clearly define the culture they want to build (not hope it magically appears).
- Leaders must walk the talk—your team is ALWAYS watching for behavioral incongruence.
- Leaders must identify and reject cultural mismatches quickly (even if they’re your top producer).
- Leaders must recognize and celebrate cultural examples through storytelling (folklore matters).
- Self-awareness is critical—for yourself and for the organization (you can’t read the label from inside the jar).
- Culture isn’t soft—it’s the foundation of everything (protect it as vigilantly as the checkbook).
- One bad apple spoils the bunch—culture killers must be exited, no matter the cost.
Questions to Consider:
- Have we defined our ideal culture? Or are we just winging it and hoping for the best?
- Are we walking the talk as leaders? Or do we say one thing and do another? (Your team notices the gap.)
- Are we quickly identifying and addressing cultural mismatches? Or are we avoiding the uncomfortable conversations?
- Do we have stories that are examples of living our culture? (If not, you don’t have a culture—you have a handbook.)
- Is the culture we’ve created core to our success? Or is it holding us back?
- Are there aspects of our culture that aren’t serving our business? (Be honest.)
- Are we protecting cultural fit as fiercely as we protect profitability?
- What would an outsider say about our culture after spending a week here?
“What the Hell Is Water?”
My business career has spanned three decades. It began as an employee before transitioning to business ownership. In the beginning, I had no concept of organizational culture.
The irony? I worked at Cummins Engine Company as a manufacturing engineer. Cummins had an interesting culture that resulted from the tension between the Diesel Workers Union and “Exempt” (salaried) employees.
I got into trouble a lot in the beginning because I had not been indoctrinated into the culture. It was counter to my “Get Stuff Done” nature. I was young, full of energy, and resistant. (Translation: I was an idiot who thought I knew better.)
At some point, I came across a book by Daniel Goleman called “Working with Emotional Intelligence.” Dr. Goleman’s book transformed how I saw my coworkers and especially the “Union” guys. I would not trade that experience for anything. Cummins was and still is a great place to work.
My point? I was swimming in culture but did not have the experience or vocabulary to describe it.
I’m reminded of a cartoon that features two young fish swimming by an old fish. The old fish says to the young fish, “How’s the water?” One of the young fish looks at the other and asks, “What the hell is water?”
Culture surrounds us, but most are oblivious to it or fail to realize they can change it. The result? An accidental culture.
And accidental cultures are almost always dysfunctional.
How to Build an Intentional Culture (Four Steps)
Step One: Define the Culture You Want
You can’t build what you can’t define.
Step one is to define the culture you want in your business. The fundamentals include a clear vision of how team members treat each other and how it will show up for customers.
Core Values – These are the immutable qualities of the organization. The values become the filter for every decision—from hiring to customer support to how you handle conflicts.
Not fluffy words on a wall plaque. Actual values that drive actual decisions.
Why – Why does the organization exist? The “Why” is the aspirational component of culture. The stronger the “why,” the more committed the team.
People don’t just want a paycheck. They want to be part of something meaningful. If you can’t articulate why your company exists beyond “making money,” don’t be surprised when your best people leave for companies that can.
Examples:
- How do we treat each other when things go wrong?
- How do we treat customers when they’re difficult?
- What do we stand for, even when it costs us?
- What behaviors are non-negotiable?
Write it down. Make it specific. Make it real.
Step Two: Walk the Talk (Because Your Team Is ALWAYS Watching)
What does that mean? Live the values and never compromise the vision.
The most common culture failure is a breach of integrity from leadership. You say one thing and do another. You claim to value work-life balance but send emails at 11 PM. You say “respect” is a core value but publicly humiliate team members in meetings.
If you are a leader, it is critically important that you realize your team is ALWAYS watching. Our teams are continuously on the lookout for behavioral incongruence. They can’t help it because of human nature.
We have evolved in community. Every person in the tribe was keenly aware of every action the leader was taking. Children are always observing their parents’ verbal and nonverbal cues. (And your employees are observing yours.)
Bottom line: The leaders determine the culture, and their actions must be aligned with the vision and values. Not sometimes. Not when it’s convenient. Always.
Your team doesn’t listen to what you say. They watch what you do. And if there’s a gap between the two, they’ll believe the behavior every single time.
Step Three: Identify and Exit Cultural Mismatches (Even Your Top Producer)
Getting rid of cultural mismatches sends a clear message to everyone: If you aren’t onboard with our values, we will offboard you.
One bad apple spoils the bunch. I have seen this several times in my career. The bad apple slowly poisons anyone who will listen. They are culture killers and should be exited no matter the cost.
Even if they are the number one producer, make a plan and get rid of them.
I know what you’re thinking: “But they make the numbers. But they’re so talented. But we can’t afford to lose them.”
Here’s what you can’t afford: Keeping a toxic high performer who tells everyone else that the values don’t actually matter if you produce enough. You can’t afford the resentment, the backstabbing, the “rules for thee but not for me” mentality that destroys trust.
It is not possible to build a self-managing company when there is an undercurrent of resentment or righteousness.
Your #1 priority should be guardian of the company culture. The right culture will protect the future of the organization. Watch over it as vigilantly as the checkbook. (Because culture leaks are as expensive as financial leaks—they just take longer to show up on the balance sheet.)
Step Four: Tell Stories That Memorialize Your Culture
Stories create folklore. Folklore creates culture.
Herb Kelleher, the legendary founder of Southwest Airlines, received a letter from a disgruntled customer complaining about the unorthodox approach the Southwest team took when doing the flight safety briefing. The customer was offended. Outraged. Demanded changes.
Within 60 seconds, Herb wrote back: “Dear Mrs. Crabapple, we will miss you. Love, Herb.”
That’s it. No apology. No compromise. No attempt to win her back.
Why? Because one of Southwest’s core values is “fun.” Herb’s response reinforced the value and is now a part of the company folklore. Decades later, people still tell this story.
You can apply this by:
- Immediately recognizing when a team member has exemplified a company value
- Sharing the story with the entire organization
- Creating and presenting awards for team members who are excellent examples of living the company’s core values
- Making heroes out of people who do the right thing
Note: In the beginning of a cultural transformation, there will be resistance. Don’t fight it. Recognize and acknowledge it for what it is—Change! Stay focused on the long-term benefits that will result from building an intentional culture. (Change is uncomfortable. Do it anyway.)
Step Back and See What You’ve Created
Lastly, it is important to regularly assess your organization’s culture from an outside perspective.
“It is impossible to read the label from inside the jar.”
Step back and observe the culture from an outsider’s perspective:
- How do team members treat each other, and is that okay?
- How does your company see customers, and is that okay?
- How does your company treat suppliers, and is that okay?
It is easy to get faked out. You think your culture is one thing, but your team experiences something completely different.
If you want a culture where team members treat each other like adults, you must ask: Do we treat each other like adults? What does that mean? What are the behaviors that a culture of “adulting” would demonstrate?
Are the leaders in the organization living the company’s values in their daily interactions? If not, why not? (And if the answer is “we’re too busy,” you’ve just identified the problem.)
Your Culture Is Your Destiny
Bottom line: Your organization has a culture. Is it a culture that will thrive in good and bad times?
Have the leaders defined the values, behaviors, and standards that are expected to be lived out? Or are you just hoping everyone figures it out on their own?
Culture isn’t soft. Culture isn’t “HR stuff.” Culture isn’t something you worry about after you hit your revenue goals.
Culture is everything.
It’s the reason great people stay or leave. It’s the reason customers love you or tolerate you. It’s the reason your business scales or stalls.
You can have the best strategy in the world, but if your culture is toxic, entitled, or dysfunctional, your strategy doesn’t matter. Culture eats strategy for breakfast. Every. Single. Time.
So What Are You Going to Do About It?
Are you going to let your culture happen accidentally? Or are you going to define it, live it, protect it, and tell stories about it?
Are you going to keep the toxic high performer because they “make the numbers”? Or are you going to exit them and send the message that values actually matter?
Are you going to walk the talk? Or are you going to keep preaching one thing and modeling another?
Your team is watching. They’re waiting to see if you mean what you say. They’re looking for the gap between your words and your actions.
Close the gap. Define the culture. Live the culture. Protect the culture.
Because the culture you build today is the company you’ll have tomorrow.
And if you don’t like what you see in the mirror, that’s on you.