Companies can improve their employees' mindset or change their culture but it is generally not some easy, short-term initiative, and it cannot just be made up along the way. The process of focusing on and evolving culture can never stop, because employees are always changing. Evolving a culture is a transformational process that requires its own plan, the right resources, a focus on the right things, and, most important, the right leaders. So even once you have the right culture in place, you need to constantly measure and check the pulse of your people as their expectations and those of your customers evolve.
Although Culture Hacker is about change, I suggest that a reason we have been so successful with our methodology is that we do not make a big deal about that change. We all know that when we start talking about change, people become uncomfortable, resistant, or even antagonistic. When you start making proclamations of change, people will get scared, which will cause them to be unable to contribute to or support any positive cultural transformation. Remember that when you loudly declare change is on the way, you will also cause the militant few to gather the troops and make it their life mission to resist anything that is suggested or implemented, no matter how positive the intended outcome. So as you approach the idea of hacking or transforming your culture, do it without all the fanfare. Speak loudly with your actions, not your words – like a hacker whose work happens without the end user noticing any change, at least initially. This is the core of our Culture Hacker approach – being subtle and exact, without causing a lot of fuss or distress.
As an example of what not to do consider this example from a client I worked with. A company executive sent a video out to the entire company, stating that their culture was broken and it was time for change. Talk about adopting the completely wrong approach toward change and improving their culture. We saw an employee base that became not only frozen by the idea of change but also miserable, because they were told that their culture and, more specifically, that they as service providers were broken. Rather than promoting a large cultural change and telling everyone that the culture is off, we quietly focus in on individual mechanisms (as explained in this book) that are relatively easy to explain and manipulate, even though they are a part of a larger change effort. Simply put, Culture Hacker is about making big changes quietly.
I want to mention here in the introduction the importance of technology. Technology is changing – and, arguably, enhancing – every aspect of our lives, our jobs, and even the employee experience. New technology is changing how our staffs work, and so it is important that we recognize that the employee experience of the future and many of the mechanisms that influence our employees' mindsets will be managed and organized by technology. Today technology is prevalent in interviewing, onboarding, communication mechanisms, performance management, recognition, career development, and training. So what is the relationship between technology and culture? In their Harvard Business Review article, Ashley Goldsmith and Leighanne Levensaler proposed this: “[W]e like to think of values as the beating heart of culture, processed and organizational structure as the brain, and technology as the nervous system that makes sure heart and head are working together to move us forward.”8 To reiterate this idea, in each chapter we have indicated some technology companies that might be effective partners in a particular area of improving the employee experience. We recommend learning more about the many solutions out there because technology is going to be prevalent in crafting any employee experience, whether we like it or not.
Finally, let's talk about money, specifically how much you pay your employees. Although this book explains the most influential mechanisms that define how your staffers feel about coming to work, I do not spend time discussing salaries or wages. The reason is twofold. First, research indicates that money is not a strong motivator in employee performance and engagement.9 Generally, once basic needs have been met, money is not the motivator we think it is. Second, I do not focus on salary or wages because I recognize that it is often not an easy variable to change, especially in a small business or when you are not in a position to effect salary increases. So the Culture Hacker methodology focuses on everything else that can influence the culture and mindset of employees.
Speaking of small businesses, because I have owned, coached, and managed a few of them over the years, I am very aware of the stresses and challenges associated with owning and running such ventures. As a result, I wrote this book with small business owners in mind too. The lessons and practices offered apply just as easily to small companies as to large ones. In fact, I've written this book in such a way that small business owners with limited or no human resources infrastructure can and must use the tactics herein to stay competitive and grow.
I wrote this book to share my insights, best practices, and inspiration for how you can create, manage, or hack your culture – to improve your customers' experiences, your employee retention, and organizational performance. By impacting all three things I know there are direct benefits to the profitability and performance of any company, which is why I believe the focus on culture should be a priority for every business person today. Thank you for reading, and thank you for wanting to make a difference in how your people feel about coming to work. There's one more nice side effect of all this – it will make you happier at work too!
1
CULTURE
MORE THAN JUST AN HR THING
Brand is just a lagging indicator of a company's culture.
– Tony Hsieh, CEO of Zappos10
Every owner, executive, and manager is responsible for his or her team, department, or company culture. No excuses. Culture is no longer just a human resources (HR) priority or thing; it is a fundamental business thing.
Culture is the collective mindset and attitude of your employees. The mindset your employees bring to work every day determines how they will take care of your customers, how much effort they will put into their work, and whether or not they will stay with you long term. The impact of a negative culture within an organization is tremendous. Poor customer interactions, high turnover, and under performing employees cost organizations – depending on their size – thousands, millions, and even billions of dollars. The research from across industries is clear: when your employees are more engaged, your company is more productive and profitable; leading to better shareholder returns. Culture is the most important business thing today.
When it comes to culture, the question is not “Do you have a culture?” because you do, and every company does. The real question is “What type of culture do you have today, and is it meeting the expectations of your owners, customers, and employees?” This question really is at the heart of what every manager must consider: Is your culture making your business better, delivering the desired individual and team performance, turning customers into fans, and causing your best people to stay? If it is not, know that there are things you can do to change your culture to where you and your staff want it to be.
Many owners, executives, and managers focus their energies and investments on business, financial, operational, or marketing strategies, but the reality is that a culture strategy will have a greater impact on your business than any other thing. Peter Drucker's phrase “Culture eats strategy for breakfast”11 is probably more relevant in business today than ever before. Employees are the ones defining your business, it's value and reputation, and for that reason, the ability to attract, retain, enable, and maximize your talent is critical for your business today.
Culture is a business thing, and all owners, executives, and managers must be involved (along with HR, if you have that department) to get the right culture in place for your business. According to Jay Haines, founding partner of Grace Blue, a global executive search company, “The cultural piece is to my mind now the single most important component of any chief executive role.”12 Now, the problem I see in many organizations is that culture is just an HR responsibility. Whether I'm speaking with