Building-a-Great-Company-Culture

Building a Great Company Culture LaSalle Network LaSalle Network is a leading provider of professional staffing and recruiting services with four offices in the Chicagoland area and San Francisco Specializing in Accounting and Finance, Technology, Administrative, Call Center, Human Resources, Marketing and Executive Search, LaSalle proudly serves companies of all sizes and across many industries LaSalle’s innovative approach to staffing is designed to provide our clients with quality talent who not only match the job requirements but the company culture, as well Table of Contents What is Company Culture Really? Your Culture is Your Brand Company Culture Case Studies 3-7 Create the Blueprint 8-9 The Right Materials 10-12 Build and Maintain 13-16 References 17 What is company culture really? “Company culture” has grown into a popular buzzword in the 21st century; every organization wants a good one, but not everyone knows what that entails, and even fewer know how to build it Many companies try to build a company culture out of flashy perks, trendy office spaces, and early release Fridays But a positive and productive company culture requires more than a kegerator “The philosophy, values, behavior, dress codes, etc., that together constitute the unique style and policies of a company.” Random House Dictionary These values and standards, along with the people who live and believe in them, define a company’s culture and shape its growth But culture is far from permanent A company culture changes as the company grows, hires fresh talent, and promotes new leaders Your Culture is your brand Up until the 21st century, what consumers knew about a brand was what the company chose to tell them Companies paid for advertising so they could decide how to position their brand Today, it’s a different story Consumers have access to information about, well, everything They can read reviews, check a company’s stocks, and ask about friends’ experiences easily This means organizations are forced to be more transparent than ever before If a company makes a mistake, the world will know So how can your company stand out? Culture 83% of employees ranked culture & engagement as important or very important to their organization But only 41% feel their organization is ready or very ready to address the issue.2 83% 41% Build a company where people not only love to work, but where they’re PROUD to work When employees love their company, they become brand ambassadors They want to represent the company well, and they want the company to succeed company Culture Case Studies No two company cultures are the same, and no company is defined by one characteristic “Culture eats strategy for breakfast.” Read about four different values and the companies who have made them into internationally recognized brands – Peter Drucker, author & consultant But some companies have built their organizations around one unifying value, and this value has shaped their growth and their success Value 1: Innovative Employees at every level are encouraged to take risks, try new things, and brainstorm new ideas Employees are rewarded for creating new products or devising better ways to things These organizations are often team-based to encourage group brainstorming and collaboration In turn, leaders of innovative cultures are open to suggestions from the ground level They’re visionaries, and they’re not afraid of fast-paced change Spotlight: Google In 2013, Google unveiled their “9 Principles of Innovation,”3 which includes principles like “Ship and Iterate” and “Aim to Be Ten Times Better.” These guiding principles reveal a key part of why Google always seems to have the next big thing ready Google employees are encouraged to think creatively about improving user experience and making the world a better place Employees can set aside one day a week to work on an idea they’re passionate about The company emphasizes that there’s no stigma attached to failure - employees can “fail with pride” and then learn from the experience value 2: empowered In these organizations, employees are encouraged to speak up: they can share ideas, express opinions, and make decisions on their own These organizations are designed to enable independence, not control it Empowered company cultures tend to be team-based, and they have a looser hierarchical structure Leaders trust employees to make unilateral decisions within their roles, and in turn employees feel more accountable for their actions Spotlight: netflix Netflix has a five word expense policy: Act in Netflix’s best interests.4 This attitude extends to their mission and their culture They foster a culture of “freedom and responsibility” in which employees have unlimited parental leave, unlimited vacation, and no performance reviews.5 The company actively discourages top-down decision making and required management approval Instead they ask for high levels of employee performance and transparency around any decisions made Value 3: Mission driven These companies connect their business goals and strategies to bigger causes that don’t directly contribute to their revenue growth Their mission is clear to everyone, internally and externally Consequently, employees tend to be motivated by more than compensation They’re attracted to the mission, they’re passionate about it, and they tend to be more engaged than the average workplace A recent Deloitte survey found that companies with a strong sense of purpose had a 71% employee satisfaction rate, four times the national average.6 These organizations are often helmed by a leader who is passionate about the company’s bigger mission, and they serve as a source of inspiration for employees Spotlight: TOMS Shoes TOMS Shoes is a shoe retailer that, for every pair of shoes they sell, donates a pair in a developing country Despite growing quickly to more than 500 employees, 36 of the original 40 employees still work for the company.7 When hiring, TOMS gives every employee extensive personality tests to determine if they would be a culture fit for the organization The company pays for employees to go on “shoe drops” internationally so they can see for themselves the change they’re working for Value 4: Service oriented While most companies value service, these companies take the concept to a new level Every employee is engaged in customer service, no matter what their job title is, and everyone is trained to put the customers’ needs above all else This approach is constantly reinforced: employees are recognized for going the extra mile for customers, and they are disciplined if they offer bad service The organization is constantly looking for feedback and communication, from its employees and its customers Spotlight: ZAPPOS Zappos is well-known for many aspects of their company culture, but their defining feature is their customer service Every new hire goes through four weeks of training in their call center, no matter what their role.8 Call center representatives aren’t held to specific call times, so they can stay on the phone with customers as long as the customer needs (which sometimes means 10 hour calls!) Employees are encouraged to help customers with their needs instead of worrying about the bottom line because the company’s leadership believes lifelong customers are more valuable than the cost of shipping or returns.9 “We believe that customer service shouldn’t be just a department; it should be the entire company.” - Tony Hsieh, Founder of Zappos Create the Blueprint “I came to see, in my time at IBM, that culture isn’t just one aspect of the game, it is the game In the end, an organization is nothing more than the collective capacity of its people to create value.” An organization’s values are the foundation of their culture These values should reflect how the company conducts business, how they expect employees to act, and what they want to accomplish This set of values will serve as the blueprint for building a positive and productive company culture – Louis Gerstner, IBM identifying Company values Start at the top Building a company culture will be impossible unless there’s buy-in from the top Leadership needs to start by identifying what values they think best reflect the company’s future, its strategy, and its character Match culture to strategy What values will lead to the best long-term success for the business? Building a new culture is meaningless if it doesn’t align with the organization’s strategic goals Ask the people Conduct interviews with employees - old and new - about what they like and dislike about the organization Ask what they value or appreciate about the company, and ask what they would change This input must help shape the company’s values because employees will have to live it Challenge each value It’s not enough to just have a list of values; each one has to have real meaning and implications for the organization moving forward If a company value is transparency, what does this mean in practice? Will executives start disclosing their salaries? Think about what each value means in practice for the company on a day-to-day basis the right materials In 2013, Adam Grant, a professor at the University of Pennsylvania’s Wharton School, wrote about the difference between giver cultures and taker cultures, and their effects on the group’s overall effectiveness In giver cultures, employees helped each other and shared without expecting anything in return “Culture is one of the most underappreciated essentials in business” - Richard Branson, Founder of Virgin Group Taker cultures, on the other hand, valued the norm of getting as much as possible while giving little back People only help each other when it benefits their own goals.10 10 Culture givers and takers Grant’s giver and taker cultural theory applies to entire organizations, but his concept can also be applied to individual employees: in every organization, there are culture givers and culture takers who display the characteristics described by Grant These people have the capacity to influence a company’s overall level of engagement As a company starts to build or change their culture, they have to look first at who contributes to the culture and who only takes from it As much as 80% of employee turnover is due to bad hiring decisions.11 The U.S Labor Department estimates it can cost on average one-third of a new hire’s annual salary to replace them.12 27% of U.S employers reported a single bad hire cost more than $50,000 in bad hiring decisions.13 Let the Culture Takers Go Many companies keep employees around who aren’t performing well or contributing to the company They’re scared to let them go, or they hope the employee will improve But this kind of employee ultimately hurts the company because they prevent growth, and they lower other employees’ morale Cut culture takers loose so they can find another company where they may be more motivated to engage signs of a CULTURE taker • • • • They only care about their own tasks or responsibilities They rarely participate in anything They aren’t willing to what it takes to finish a project or task They don’t communicate with their peers or managers 11 Hire Strategically Getting rid of culture takers isn’t enough: it’s also important for every organization to continue to hire new talent who will grow, produce, and add positively to the culture Take time interviewing potential candidates Have each candidate meet with at least three people who work at different levels in the company If one of these people has a concern about the candidate, they may not be the right fit Ask candidates interview questions that reveal their values and character Only hire people who will fit into and contribute to the culture the company is building The airplane test Ask yourself if you could sit next to a candidate on an airplane for two hours and enjoy yourself The answer can help you decide whether or not the candidate would be a culture fit for the company! interview Questions TO GAUGE CULTURE FIT • • • • • What you like to outside work? In what kind of environment you think you thrive? Why did you leave your last job? What does your best friend for a living? What was the worst company culture you worked in? How did you cope? • What motivates you? • Tell me about a problem you recently solved • Money and reality aside, what would your dream job be? When candidates answer the questions, listen to their answers and ask follow up questions Often their answers to the follow up questions reveal more than their first responses 12 Build and Maintain “No company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it.” Building a culture isn’t a quick or easy process It will take time, dedication, and patience As the new culture develops, keep the company values in mind Every initiative and program should reinforce these values and build upon them -Jack Welch, former CEO of GE 13 Follow the leader Make sure cultural changes start with the leadership team They have to be willing to commit their time and efforts to building or changing a culture, even if it means making sacrifices If leaders aren’t onboard, employees won’t be Get everyone on the same page Make sure executive leadership and management have the same vision and goals for the new culture 64% 64% of employees say trust between employees and senior management is “very important” to their job satisfaction.14 Engage leaders in the change Have different members of leadership spearhead parts of culture building, from communicating new initiatives to introducing changes to best practices Heed concerns Executives may have different perspectives on how the new culture will impact business Listen to their concerns, and make adjustments if need be find your foundation Identify the “culture champions” in your organization These people tend to be social, influential, and well-respected at the company, and they exist at every level in organizations They work hard, produce results, and add to the culture When they’re excited about something, the rest of the company follows Bring them on board to help build the company culture These culture champions can: • Get others excited about building a new culture • Hold their peers accountable to new cultural norms • Act as liaisons for the company’s leadership to convey employee feedback and concerns 14 Start small Every house is built one brick at a time, and a company culture is no different Defining a company’s values is a big step, but these words will make little difference until they’re lived every day Identify where small changes could make the biggest difference in the company culture, such as updating the dress code or changing best practices for meetings Communicate a lot Cultural change should never happen quietly As a new culture develops, over-communicate Reassure employees their concerns and input will be heard: transparency and honesty can make the difference between a successful new culture and rocking the boat 55% 55% of employees say communication between employees and senior management is very important to their job satisfaction.15 Have an open-door policy Both managers and HR should keep their doors figuratively and literally open as the company builds its new culture Employees should feel comfortable and safe expressing their frustrations or offering feedback Hold company town halls Regularly offer an open forum for the whole company Give staff a chance to ask questions At these meetings management can make important announcements and field questions about new changes Host executive Q&As Give employees access to executives who are willing to sit down and answer questions Getting honest answers from the top reassures employees that the company is truly bought in to building a new culture 15 Recognize success Celebrate people who are contributing to the culture, promoting company values, and performing well Recognizing stellar employees boosts engagement and morale, and it motivates others to follow suit 90% of HR professionals say a values-based recognition program has a positive impact on employee retention.16 88% say these programs help instill and reinforce corporate values in employees.17 #1 finally never stop adjusting As the culture develops, let it change: make tweaks, add new programs, and get rid of bad ones Hire new personalities who will push current employees, and listen to their ideas, too Cultures are always changing, and that’s a good thing 16 REady to build? If you want to know more about building a great company culture, subscribe to our blog, Thank God It’s Monday, or call us at 312-496-6561 references “Corporate Culture” Inc Encyclopedia Bersin, Josh et al “Global Human Capital Trends 2015” Deloitte University Press Leong, Kathy Chin “Google Reveals Its Principles of Innovation” Fast Company, November 20, 2013 Hastings, Reed “Culture” Slideshare August 1, 2009 McCord, Patty “How Netflix Reinvented HR” Harvard Business Review, January-February 2014 Issue Bersin, Josh et al “Global Human Capital Trends 2015” Deloitte University Press Mycoskie, Blake “The Way I Work: Blake Mycoskie of TOMS Shoes” Inc., June 1, 2010 Zimmerman, Mike “The Business of Giving” SUCCESS Magazine, September 29, 2009 Hsieh, Tony “Your Culture is Your Brand” Zappos Blogs, January 3, 2009 Edwards, Jim “Check Out the Insane Lengths Zappos Customer Service Reps Will Go To” Business Insider, January 9, 2012 10 Grant, Adam “Givers take all: The hidden dimensions of corporate culture” McKinsey Quarterly, April 2013 11 Yager, Fred “The Cost of Bad Hiring Decisions Runs High” Dice Resources 12 Ibid 13 “More Than Half of Companies in the Top Ten World Economies Have Been Affected By a Bad Hire, According to CareerBuilder Survey” CareerBuilder, May 8, 2013 14 “2015 Employee Job Satisfaction and Engagement” Society for Human Resource Management 15 Ibid 16 SHRM/Globoforce Employee Recognition Programs 2015 17 Ibid @LaSalleNetwork LaSalle Network TGIM LaSalle Network LaSalle Network LaSalle Network