EIGHT

Decoding Culture

How do things really get done?

Before becoming a leadership and organizational psychologist, I enjoyed a career as a chef and restaurateur. Before that, I was a casualty lines underwriter. I was hired right out of high school as a trainee by a large insurance firm and eventually landed at a small high-risk underwriting group. After a successful seven-year run, I decided it was not for me. I had always had an interest in the culinary arts and, while still at the underwriting firm, I began working part time as a line cook, which reignited my love of cooking. I resigned and moved to Hyde Park, New York, to attend the Culinary Institute of America.

Upon graduation, I received a number of offers, including one from the Galway Cooking School in Ireland, one from La Récolte, a top-rated restaurant in New York City, and another to spend two years as a sous chef at a luxury resort in Switzerland. My wife and I had just our first child and, choosing to stay close to our families, I accepted the offer from La Récolte, which had been ranked number four on New York Magazine's top restaurant list. The restaurant's executive chef, Jean-Marie Pougnet, had been recruited from a Michelin-starred restaurant in France, was in his late twenties, and was already considered one of France's top young chefs. At La Récolte, he had assembled an incredibly talented group of chefs, and I was honored to be joining them.

None of my experiences prepared me for La Récolte. The ambiance was enticingly warm and welcoming, yet impeccably arranged, meticulously organized, and subtly luxurious. The cleanliness and organization was readily apparent at the back of the house and the kitchen. The chefs preparing for the evening's dinner service were calmly going about their work with a fluidity I had never seen. I was greeted by Jean-Marie. His appearance was flawless. After a brief tour, Jean-Marie chuckled, and asked in his thick French accent, “So Edgaah, how do yuh like zee keetchen?”

“It looks great. I like it a great deal.” I replied. “And it smells really good.”

Jean-Marie gave me a terse look. “Food dose not smell Edgaah! It az en errr-oma. It az a beautee-ful errroma.”

Welcome to the culture of La Récolte. Stepping onto the cooking line was intimidating. Not only would a mistake by one of the line chefs be a costly error, imperfection was simply not tolerated. As a chef at La Récolte, you were expected to always be at your best, to always perform under pressure, and do it in a calm, consistent, and confident manner. To move forward in the ranks, not only did you have to demonstrate competence, you also had to be innovative, and creative, with an in-depth knowledge of wine and cuisine and a refined palate.

The expected high level of quality and performance was apparent in everything, even if the customer would never see it. To be untidy, unshaven, or not look the part of the chef was unacceptable. There was no formal code. Yet everyone adhered to the same set of standards. There were other aspects of the restaurant's culture that defined the tradition of La Récolte. Chef's table was one of them. Jean-Marie orchestrated the timing of this afternoon ritual. Everyone was expected to stop what he or she was doing and sit down to break bread together. I found this out during my first week in the kitchen, when I fell a bit behind in my preparation for dinner service and unknowingly made the choice to continue my work. Not being prepared to take time for chef's table was not an acceptable choice. Not only was it considered rude; it was an indication that you were disorganized or not sufficiently competent. Luckily, during one of my first weeks, one of the other chefs took me aside and explained the importance of participating. The exchange did not go unnoticed by Jean-Marie, who made it a point to reinforce that I had made the right decision by explaining that chef's table was part of the bond and camaraderie we all enjoyed and what made us special.

In the kitchen at La Récolte, there were no signs containing mission statements, values and beliefs, or rules to guide behavior. You had to discover how to fit into the culture by recognizing its nuances, gathering information, and asking questions. There was no formal orientation. You had to be a quick study.

MOVING BEYOND TRIAL AND ERROR

Entering and becoming a member of a new culture is not unusual, whether it's a new workgroup or a new team or a new job. Discovering how to successfully become a new member of an existing group is typically our first priority. “Fitting in” is a key part of our shared human experience and a crucial part of any group's culture. All people want to feel safe; to be free from the fear of being ignored, humiliated, ostracized, unloved, rejected, embarrassed, feeling like a loser. When we are not afraid, we feel secure, confident to be ourselves, and act authentically in the manner that reflects what we think, see, and feel.

Until we understand the culture of a company or team, we constantly risk saying or doing something that offends our coworkers. Typically, when first thinking about how a product or service is created and delivered to the customer, we first describe our activities, including the methods, procedures, and systems. Sometimes, we explain the performance of our roles and tasks and the approaches and means by which our outcomes are achieved. In technical and mechanical environments, we might discuss our use of technology, equipment, or devices. We might also mention the knowledge, skills, and competencies required, the results we achieve, and the level of performance to which we aspire.

All of these are important aspects of how we get things done. Yet, a deeper, more meaningful aspect of the how influences the way in which people contribute to their groups, teams, and companies.

Culture guides how we behave toward and work with one another; it dictates whether a company or team reaches its true potential. It is why culture is a key lever in attaining alignment.

Just as intention defines the what and why of business, culture defines the how. The definition of culture goes beyond describing the processes, procedures, and systems we use to create and deliver a product or service; it describes the richness and depth of how the members of an organization or team interact.

It is important to remember that business is a human art. Our motivations connect us as customers, as members of teams and groups, and as individuals within organizations and their cultures. No matter the size of the group, culture is the result of how people work together and get done things. Culture guides and influences how each member behaves and expresses his or her motivations and desires. Our behaviors and interactions take on patterns that eventually result in what are called cultural norms. Underlying them are layers of values, shared meaning, belief systems, paradigms, philosophies, and assumptions.

A SIMPLE DEFINITION

Unfortunately, most leaders do not do a very good job of directing their cultures in a purposeful and effective manner. This is not from a lack of interest or desire for a strong and healthy culture. Rather, it is because they lack a framework for creating a sound vision and strategy for their cultures. Leaders typically create and develop a culture through trial and error.

When it comes to strategic thinking, culture rarely gets the attention it deserves, and leaders are seldom taught about culture or explore it in any depth. It is usually not thought about until a contentious issue or conflict arises, and it becomes a problem. Then, it is often viewed as politics: clashing coalitions with differing ideals seeking power and influence to win over an individual, group, or inner circle because influencing them will result in resources, perks, and perceived favoritism. It's rare to find a company of size that does not have a preferred circle or hierarchy through which individuals attain increased influence. This is not always a negative; it depends on how it is used and how it impacts the rest of the company. When it has a negative influence, such maneuvering for the right to dictate or control direction, it is typically an indication of misalignment.

Unfortunately, leaders and managers are given only the definition of values and beliefs through which to define culture. They are not taught how to reinforce them effectively. Without a measurable and observable framework, leaders are left to figure it out for themselves, and individuals must come to terms with what is expected of them. In this chapter, I will provide a comprehensive framework that will enable you to understand the power of culture. I will also give you a common language and set of principles for observing and measuring culture that can be applied strategically in alignment to the business's brand intention. A strong culture that doesn't align to brand intention can be as damaging as a weak one.

Among others, Peter Drucker, Warren Bennis, Peter Senge, John Kotter and James Heskett, William Schneider, Jon Katzenbach, Jerry Parros, and Jim Collins have all weighed in on the definition of culture. Each offers a unique perspective on, and definition of, culture. They also have much in common.

Culture defines how people individually and collectively interact with one another to get things done. This includes how they create success for themselves and one another, and what is acceptable and unacceptable behavior. Every company, team, and group has a unique culture.

Culture is like personality. We can readily identify particular behaviors and associate them with styles and personal traits. The resulting patterns that emerge define who we are. There is no one formula for a successful culture. For example, a rock band's tour bus differs greatly from a children's school bus. Both achieve the desired outcome of arriving at their destinations on time; they just go about it in very different ways. The behavior requirements for riders on a band's tour bus and passengers on a school bus are vastly different. Similarly, as we define culture and describe its consistent and characteristics, remember that there are nuances of behavior and interaction in each organization or team and how it operates that make them different from one another.

Words that describe values and beliefs (i.e., respect, integrity, quality, trust, and teamwork) do not themselves adequately define a culture. It is the interaction of human beings that allows the language of a particular culture to take on and express their true meaning. For example, if I were to ask a group of fifteen leaders to write a one sentence definition of what the word integrity means in their company's culture, I'd likely get a diverse set of definitions.

Culture keys—the many characteristics that define culture—are the strategic levers that bring into being and help define the emotional forces that influence behavior. They can be applied to strategically influence the culture to manifest the preferred patterns of individual and group behavior. They can also be used to better and more clearly articulate how the culture is to be aligned. The culture keys also provide a set of observable and often measurable characteristics, which help to clearly articulate and communicate them.

One culture key, for instance, is the interpretation of how decisions are made. Often, groups lack clarity about what decisions are needed, what conversations leading to the decision should look like, who is involved, what level of participation is required or expected, who has the final say, and who is responsible for communicating and implementing the decision. By articulating and defining the decision-making process, we can better observe and manage how it is used in planning, in problem solving, and in generating, sharing, and using information. This is why the alignment of power and influence, and whether it is used intentionally or unintentionally, usually originates from the leader.

Among other characteristics of behavior, culture provides insight into the level and quality of communication and interaction among the members and parts of an organization. One of the most valuable is how conflict is managed and resolved. In fact, an individual's first experience, and the one through which that person will interpret the culture, occurs when he or she first observes or engages in a conflict. The level of collaboration or win-lose posturing provides a great deal of information about what conflicts to engage in, the appropriate level of participation, and whether to argue or fall in line. How members respond is an aspect of what is acceptable and unacceptable behavior.

Strategically, culture keys include how members are empowered and rewarded, how compensation and promotion is used, how hiring occurs, and what the focus of employee development is. Culture offers insight into how teams are created and defines cooperation, collaboration, and how people challenge one another. When individuals do not act responsibly, culture also explains how they hold one another accountable. Leaders must realize that culture keys provide a powerful strategic approach to how the team or company can be purposely aligned with the experience of the customer. The greater the alignment of a culture's internal behaviors to the external expectation and experience of the customer, the greater the trust in the product or service, the people delivering it, and the brand.

THE CULTURE KEYS

When a guitar maker builds a new instrument, he or she starts with a plan and a template of how the new guitar will look. The first and foremost consideration is how the instrument will be used, which affects the type, shape, and size of the guitar. The parts are pretty much the same for all guitars, yet, if it's an electric guitar, it requires pick-ups and a jack. Other options include a choice of wood and materials to be used, whether a pick guard is needed, and what color and finish is to be applied.

When the guitar is maker is finished, two very important steps remain to be taken. The first is the addition of strings, without which the guitar has no musical value. The second is to tune the strings to the desired pitch.

Once the instrument is played, the strings stretch and wear, requiring the player to repeatedly fine tune the guitar. Occasionally, strings will need to be replaced. The guitar will also undergo wear and tear, requiring maintenance and repair. The more it is played, the more it will open up; that is, its tone and resonance will develop, and the guitar will sound richer, making it more valuable to the player. The better it gets, the more players will be interested in playing it, and it will likely increase in value. Nevertheless, most of its parts will remain the same. However, each player will influence its tuning—the alignment of the strings to create tone and harmony.

Building and leading the culture of an extraordinary company is much like building and playing a great instrument. While the basic ingredients are the same, what the business does will affect specific aspects of how it is designed and built. Pragmatic decisions will be made reflecting the practical considerations of size, structure, and the systems needed to support its functions and processes. The way a business meets the demands of how it is intended to perform and how it will attract customers and resonate in the marketplace must be defined. Just as a guitar needs a player, the company needs talented and creative people to bring it to life, and, like a guitar, constant attention is required to bring it into alignment. The leader must know how to tune the keys.

Over time, a company will need to be looked after, maintained and, occasionally, repaired. A leader must take pride in and constantly look after the health and well-being of a company's culture so that regardless of who leads it in the future, it will be a prized instrument on which the art of business is played.

Guitars now typically have six to twelve tuning keys, while older versions had four. Variations of the guitar include the simpler 3-string Turkish baglama, the 4- and 5-string banjo, and the more complex 20-string sitar. Like these instruments, a company can be highly intricate and contain more keys; the more intricate and the more complex a company is, the more demanding and challenging the alignment may be. For this reason, we will focus on the keys to alignment that have a great effect on culture and will provide you with the greatest leverage. As you read, consider which of the culture keys you already strategically apply, as well as those that offer a new opportunity to create further alignment. Second, explore how they are presently being used, the influence they currently have on your culture, and what opportunities you have to leverage them further. Third, as you identify each culture key you currently apply, begin thinking about whether it is aligned or misaligned to the company culture. Last, remember that values and beliefs are words that can be understood in different ways and be subject to personal interpretation. Try to further articulated them with clarity and provide specific meanings that align them to your particular culture.

Key #1: Power and Influence

Power and influence is a major contributor to what is known as the politics of the culture. They also provide insight into how leaders affect the activities and actions of the team or company. Historically, there are three sources of human motivation. In some cultures, the source of individual and team power lies in the expertise, knowledge, experience, and competency associated with a person or persons. This may also be reflected in the level of authority granted to someone through a title or rank (i.e., team leader, project owner, practice leader). Such power can sometimes be further leveraged by taking control of situations that offer the opportunity to reinforce one's capability, know-how, or proficiency. In other instances, amiability and friendliness is the source of power and influence, reflecting the human motivation of attention and conveyance of importance and significance. In some cultures, encouraging and inviting others to participate is a means to engage influence; listening and creating mutual respect transmit recognizable power. A level of social interaction exists in all teams and companies that can be leveraged as influence. In some cultures, the more socially active one is, the greater the impact one may have on others.

A third distinctive source of influence and power results when individuals are seen as truthful, genuine and forthright, and as acting out of a commitment to a set of higher values and beliefs. Often, individuals who are transparent and are aligned with a set of values and ideals that fit with those of the culture attain great personal power. While it can easily be overlooked, this source of influence often results in informal leadership that, despite an individual not having a formal title, rank, or position of granted authority, manifests significant power.

Key #2: Planning and Goal Setting

Planning and goal-setting processes typically have the same primary steps and components. For example, once a mission and vision are articulated, most strategic planning processes have similar elements of market and competitor analysis, assessment of the company's strengths and weaknesses, identification of opportunities and threats, articulation of organizational and group strategies, and so on. What varies from culture to culture is how they are used. This is an important point because the principles that are applied to the alignment of how planning and goal setting are undertaken apply to the alignment of the practices associated with leading change. When we think about strategy, we think about planning. When we think about planning, we think about change. Strategy is a plan for change.

When we look at planning through the lens of change, we realize the significance of aligning planning processes to the culture. One thing that makes the alignment of the approach to planning to culture so powerful is the consistency it provides. When people undergo change, they go through a period of transition during which they may experience fear of the unknown and worry about how it will affect them. The result may be denial and resistance as they grapple with whatever they may have to relinquish. For this reason, consistency, which takes the form of culture, is essential.

In this case, consistency relates to how things get done. When people are asked to participate in a familiar way in a strategy for change, it provides an emotional anchor from which to plan and contribute to setting goals. Thus, if leaders of a company with a collaborative culture of high involvement invite employees to contribute to planning, it represents a welcome opportunity and makes the change more acceptable. It is consistent with the experience of the employees and their perception of the culture. If a plan and directives are handed down without their involvement, they will likely respond emotionally and act with a greater sense of fear and anxiety.

The opposite can also happen when a culture is more authoritarian, and plans for change are cascaded from the top with little employee involvement. Employees expect to be told what to do; their goals and performance expectations are provided to them. If they are accustomed to this culture and have relied on it for personal success, they are likely to trust and execute the leadership's plan. If they are asked to participate and be more involved, they may not know how to engage and may not trust a process that is out of alignment with how things typically are done.

A variety of approaches to planning and goal setting directly impact how successful the outcomes are, including:

• How the process aligns to the values and beliefs of the culture.
• The breadth and depth of involvement.
• The use of analytic and assessment tools.
• The required level of expertise.
• The use of tools that align to the culture.
• The definitions of empowerment.
• The common goals across the company.
• How time efficient or organic it is.

How schedules and milestones for team and individual performance and accomplishments are set and managed are also important considerations, as is how projects are managed. This includes how resources are managed in support of projects and programs, because they can often come into misalignment and result in project delays and cost overruns, thereby creating the possibility of failure. It is important to recognize how to best align planning and goal setting, as well as change management, to culture, since misalignment can impede necessary change and be very costly. When it comes to aligning for change, one can never fine tune enough.

Key #3: Problem Solving

All of the culture keys play a significant role in defining and articulating aspects of culture and affect how people are influenced. A group's lack of understanding about how a problem is to be solved or a decision is to reached can have significant consequences. The reason is that the process for problem solving is not only a platform for power and influence, it also affects how individuals relate to their own motivations to be heard, to be competent, and to decide how open and honest they can afford to be.

When it comes to the various approaches and the definitions of problem solving and decision making, there is ample room for misinterpretation, confusion, and mistrust. This can result in a lack of commitment not only to the identification and creation of possible solutions, yet also to the level of employee commitment and buy-in to the implementation of the outcome.

When the process for problem solving is unclear, members of a team or group may not engage and participate. Because all the necessary information is not brought into the process, the best possible solutions and options will not be manifested. There can be varying degrees of lack of participation, yet even if it is minimal, the person with the most important information or data may not be heard or the person with the best possible idea or insight may not share it with the group. Assuring that every person is involved in the problem solving process is always a good idea.

Different processes and approaches work well for certain cultures, and it is important to find and use those that align best. A good example of an often-used approach to problem solving that requires clear alignment is brainstorming. While there are a many definitions and step-by-step processes for brainstorming, the only approach that will really work is one that aligns to the culture of the group. For example, two requirements of brainstorming that are consistently included are (1) staying with the process until all ideas are generated by the members of the group (often referred to as working to exhaustion) and (2) refraining from making judgmental statements or critiquing ideas until input from all members of the group are heard and recorded.

Sometimes these two requirements align to the culture of the group (Group A), and members easily commit to and engage each other in this way. The group believes that the path to successfully developing the best solutions is based on everyone participating and being heard, getting the greatest number of ideas to work with, and collaborating to find the best idea or combination of ideas to address the problem. Another group's culture (Group B) places greater value on the members of the group challenging one another. Its version of brainstorming is less about everyone being involved and more about those with the best ideas stepping forward and getting involved. It's less about getting as many ideas as possible as it is about finding the quickest path to the best solution.

Groups A's approach is not better than Group B's. What is important is that each group engages in a brainstorming process that best aligns to its culture and how it gets results. This insight helps us determine a number of factors that influence how members of a team or company engage in solving problems and tackle its challenges. Among those to be considered are alignment on the desired results; the expectations for participation in problem solving; the process that will be applied; how information and data are used and developed, including the specific roles that are undertaken as part of fact and data; and the definitions of collaboration. Numerous tools and processes can be applied to problem solving; in all cases, the process will be smoother if those involved are clear on all of them and if the methods feel familiar and reflect the culture of the group and how it really goes about doing things.

Key #4: Decision Making

A major source of predictability and strength in a culture comes from clearly defined roles, as well as the responsibility and authority people have to make decisions. Lack of clarity and alignment on how decisions are made is one of the major sources of conflict. A host of considerations surround process, participation, and empowerment. All cultures require clear definitions of the level of authority that individual and groups have to make decisions and how this affects the results.

Decisions can be made by a single person, by an influential minority, by majority vote, and by consensus. The key is not always which is used; it is often the clarity and understanding of how it is defined and how consistently it is applied. While not everyone will agree with how decisions are made, the process should at least be predictable. When it is unclear, misunderstood, or inconsistent, it often results in conflict, disagreement, and further misalignment.

Many leaders say they expect other members of the team to participate; that, as leaders, they take a participative approach and involve others in the process. Before proceeding, however, look at your own preference and your definition of participative decision making. Then, continue reading.

Every leader has a unique perspective and approach to decision making. Some bring issues to the team and ask members to share their perspectives and collaborate on reaching a consensus decision. Such leaders believe their role is to encourage the team's collaboration and best serve the team by supporting its outcome.

Others gather the team members and ask them to participate in the decision. The team provides its insights and perspectives. The leader listens to their input, takes it under advisement, and then makes his or her decision. Some leaders will have already made a decision, yet they will still ask team members for their opinions to give everyone a sense of involvement and get their buy in.

Thus, the definition of participative decision making can differ from culture to culture, leader to leader, and team member to team member. For this reason, it is important to always be clear about what the approach is. The following is a short list of options:

 

Single-Person:	One person—often the leader or someone appointed the leader or group or a person with the defined role—is given the responsibility and authority to make the decision. Influence can also originate from expertise, relationships, connectivity, and authenticity.
Minority:	Whether the group consists of two, three, or more, minority decisions are made by a group that represents a minority of the whole. This typically occurs in two ways. First, the leader gives a small group or team the authority to make a decision. The second is when a small group influences the larger group to agree with its conclusion. A minority group may also be granted authority by a larger group based on the individual or collective competence or roles of its members.
Majority:	The majority comes to a conclusion that becomes the group decision. Sometimes, as is the case of a board of directors, a formal vote is taken; the position receiving the most votes becomes the group's decision. More often, informal processes for measuring the majority are used.
Consensus:	This approach typically requires the most clarification, so a good definition of consensus should be articulated. A consensus decision requires the collaboration of those involved. In most instances, teams and groups use consensus to encourage individuals to be innovative and creative in finding the best possible outcome. Too often, despite good intentions, the group uses one of the previously mentioned approaches; and the idea of consensus is used to solicit the “buy-in” of individual members, who do not agree with the decision. A popular approach is to ask everyone, regardless of their position on the issue, to support the group decision. Note, however, that a big difference will be seen in the behavior and contribution of group members who are committed to the decision and action and those who are merely showing their buy-in or acting out of compliance.
Unanimous:	A group may opt for a unanimous decision or concordance, an undertaking that requires a strong commitment to open and honest dialogue. Although the most difficult to achieve, its results can be very powerful and positive. Although most leaders believe unanimous decision making is too difficult and takes too much time, groups and teams that engage at this level usually have a higher level of trust and openness. This results in faster and more engaged decision making because no games are played. It also results in the highest level of agreement and individual commitment to the outcome.

It is important to be aware of your own preferences for engaging in a group decision-making process. What can often get in the way is not what the group is deciding, or what its decision may be, yet the misalignment of how it is being made.

Key #5: Conflict Management

Of all the ways that we learn about the culture of a group or company, the one that often provides the first and most memorable lesson is when we experience conflict, that is, either when we see others engaged in conflict or we find ourselves engaged in it. Power and influence, rank, position, and role can all be observed in how people tussle with one another. A culture's values are often tested in times of conflict, which reveal how winning and losing is perceived and what values are most important.

A telling aspect of culture can be detected in how participants build coalitions. In some cultures, winning the argument is achieved through the size and strength of the coalition. For most people in a conflict, one of the first steps they take is to look for support. A conflict is usually an expression of anger that results from not getting what one wants or needs. This is natural. Cultures are made up of individuals busy engaging one another to meet their needs. When those needs are not met, people engage in conflict with those they hold responsible. If we observe conflicts in the context of culture, we'll probably be able to identify the source—and chances are it will align to the core values and beliefs of the culture. There are three causes of conflict, and they align to the three sources of human motivation. What is often at the heart of a conflict is that something is perceived to be missing. What people expect most of their culture is quite telling. It could be the need for inclusion and involvement, for recognition of one's performance and capability, or the desire to openly express what one thinks or feels.

Key #6: Incentives and Rewards

Incentives and rewards are intended to reinforce behavior that results in the accomplishment of goals and objectives. The popular approach is to align the incentive, reward, or celebration to the stated measurable goal. The belief is that the more aligned the goal and rewards are, the more likely a person will be to pursue and achieve it. In the simplest terms, what is measured and rewarded gets done. The most popular reward is money. This doesn't necessarily mean it is the most effective or the most important to everyone; there is more to human motivation than money. It's just a matter of individual preference and need.

Over the past several decades, surveys and studies on what employees want and what motivates them have focused on the connection of motivation and reward to employee morale, satisfaction, and performance. The list has remained fairly consistent over time, and money usually does not take the top spot, although most people work for money. If money is a given (at whatever level), then what other important influences affect how people feel about their work, their employers, and themselves.

Surveys and studies repeatedly show that wages rank number five or lower as a motivator. The top four to five usually include being appreciated, interesting work and the opportunity for growth, job security, help with personal problems, a collegial work environment, good mangers and coworkers, and feeling part of things.

With the possible exception of job security, the other motivators are all elements of culture. The key to how employees feel is the environment and direct relationship to fellow employees and leaders. This is clear evidence that the need to align how people are incented and rewarded with the right cultural fit is the most powerful lever influencing performance.

When it comes to leading the culture, it's important to recognize the substantial value placed on the employee's direct relationship to managers and leaders. As a company grows, it becomes more challenging to manage and lead people consistently. This fact reinforces the importance of leadership development. For smaller businesses, key leaders are more visible and accessible. The ease with which people can observe, be influenced by, and interpret the leader's behavior requires a consciousness of how easily the culture can be influenced. However small or large the business, how people feel about their managers and leaders is a key source of personal motivation.

Additional considerations that are important to the alignment of incentives and rewards to a company's culture include whether the reward is focused on group or individual performance. Often, combining the two creates tension and raises the question of which is more important. That priority conveys a value that reveals what behavior is more likely to be rewarded and affects the nature of teamwork. A group reward conveys the value that a person's contribution to the group is more important than individual achievement, while a reward focused on the individual conveys the opposite.

Ideally, the two should come together. Individual performance contributes to the group's success, and both are rewarded. However, the two are often interpreted as separate considerations. As a result, people are uncertain of the company's priorities and which behavior will earn them the highest reward. Similarly, when a group's overall success is questioned, members are left wondering at what point it is more beneficial to pursue their individual performance and reward. Such nuances are important. Rather than convey consistent messages as to what is important to the culture, they can create confusion.

Aligning incentives, rewards, and celebration contributes to the emotional aspects of performance. It is important to pay attention to the non-monetary aspects of rewards, including the intrinsic benefits associated with contributing to the mission or vision, the interest in the idealistic nature of the company's brand intention, and relationship with peers who share your personal values and intention. For some, it is the sense of accomplishment and status associated with expertise and the personal recognition one gains. For others, it is the social celebration and the feeling and shared euphoria derived from being a member of a community or high-performing team. As with the other culture keys, the important aspect is the alignment to the values and beliefs of the culture and the expectations of how people interact with and work with one another.

Key #7: Hiring

Extraordinary cultures learn to be really good at hiring the right people. As a culture strengthens and clarifies its alignment to its brand intention, it attracts individuals who are more likely to be good fits. There are two good reasons for this. The first is the emotional connection and affinity on a conscious or subconscious level that people feel for the brand intention and the desire to be involved and connected with it. This is one of the reasons why psychological typing has become a popular component of the hiring process. Not only is it applied to evaluating the alignment of an individual to a specific job function or role, it is also used as a tool for evaluating whether a candidate is a good culture fit.

The second reason is that members of an aligned culture are more apt to share their experience with others, attracting like-minded people seeking employment and new opportunity. This is a valuable asset. Some of the best recruiting is accomplished by the employees of companies who are true believers and invest themselves in brining like-minded and talented people to the company.

To this, add the power of the culture itself. The first two are products of a company's culture. However, in today's world of transparency and information availability, communicating and deliberately marketing your company's culture is an important aspect of attracting the best fitting talent.

Another aspect of alignment, which speaks to how the decision gets made and with what degree of consideration, is to hire deliberately, whether slow or fast. This requires a very clear idea of what competencies, skills, knowledge, and expertise are required for the new employee to succeed. Any new hire should sense that they will be able to perform and meet immediate and longer term performance expectations. A great hire is someone who can meet the criteria of competency and knowledge and be a good fit for the culture.

Two other important aspects of the hiring process require alignment. The first concerns the interview process itself. Those involved must be aligned on the scheduling and sequence, aware of the criteria on which a decision will be made and consistent about how candidates are interviewed. It should be clear who is doing the interviewing, what key findings each interviewer is responsible for attaining and reporting, what each interviewers role and areas of inquiry are, and what questions each is responsible for asking. Each person must commit the time necessary to conduct a thoughtful and thorough interview. Taking the time to hire well usually pays long-term dividends. Not hiring well can be very costly.

The second consideration is alignment on how the hiring decision will be made. If this part of the process is unclear, the desired outcome to hire the best candidate can be undermined. One CEO of a sizable company insisted that she delegated the hiring of new employees to the managers and executives and would support their decisions, yet she still wanted to meet each candidate personally. On more than one occasion, the managers and executives involved agreed on a hire only to have the CEO raise doubts, often without much justification. Those involved interpreted her questions as a rejection of the person and moved on to the next candidate.

If a team is making the hiring decision, many of the same principles apply. The team should align on the criteria for the position and role, the information being shared with the interviewee, and what questions are being asked and by whom. Team members may also also be aligned on how the decision will be made, a process that should be made transparent to the candidate. An early display of authenticity and trust invites the candidate to reciprocate and answer questions candidly and forthrightly.

In any interviewing process, it's important to provide the candidate with information. It's much more important to ask questions and listen. It's only through intentional listening that we can determine whether someone has the qualifications for a position and is a good fit for the culture.

The next part of the hiring process occurs after the candidate officially becomes an employee of the company. If the selection process went well, then the individual will already have a pretty good idea of the key elements of the culture, although what the person learned during the hiring process does not provide, by any means, a complete picture. Whether meeting with a leader or a team members or participating in a more complete orientation process, the first days of a new hire's tenure offer the best opportunity for education and assimilation to the company culture.

A good rule of thumb is to share everything about the culture that you have learned since your first day, such as what you would have found helpful on your first day. This includes, aspects of the culture that make it great as well as the challenges and issues it faces. Let new hires know what is expected when conflict happens, how power and influence are used, what to do when things aren't working, and how to find joy and celebrate the work they are engaged in. Let them know how to be successful and contribute to the success of others. When the time comes to teach someone about your company's culture, don't hold back. This aspect of the hiring process is often a lost opportunity, and the new hire is left to finding out about the culture by trial and error. You can't cover every detail or nuance about your culture, yet a little is better than nothing. And more is even better.

Key #8: Role Definition

A company founder and CEO recently eliminated the use of job titles in her professional services company because she never liked the competition for titles and thought the process was outdated and too often took precedence over the level of contribution being made. In fact, with few exceptions, the performance of recently promoted members of her firm declined once they achieved a higher title. She also didn't like how those with more important titles interacted with employees of lesser status. It was an impediment to open and effective communication, hindered the exchange of ideas and the flow of information, and presented a barrier to collaboration. She felt titles created a wall that had to come down.

Making the decision work wasn't easy. Many longer term employees were angered over the loss of the status and recognition they believed that they deservedly earned. Some felt that it would keep the company from attracting talent; they believed that better and more qualified people put a great deal of value in a title and the status that goes with it and that younger people coming into the company looking to build their careers would want a title to add to their résumés.

The CEO, who was interested in performance, noticed that younger upstart employees and those in the middle were performing at higher levels than their superiors, yet she was concerned about the possibility of losing a few of the longer term producers.

She hit on the concept of role definitions, which she felt was more accurate and less constraining than titles. Such definitions allowed people to expand what they were doing and be more creative. Along with broader role definitions, she instituted a more vigorous and evenly distributed pay-for-performance approach. Based on the initial results, she expected the subsequent higher levels of performance would more than offset the risk. Her ultimate goal was to create a better culture.

Role definitions and how they align to culture hold several sources of emotional content. For one thing, as the story demonstrates, role definitions are often tied to titles and offer a response to the human motivation to be competent and have the predictability and status associated with control. Often, a role definition verifies one's place in the hierarchy.

People are interested in putting their talent, knowledge, and expertise to use and having an opportunity to further develop. In focusing on how roles are defined, one important factor is how people are expected to apply their competencies to their work. Another is how role definition can be used to engage people to learn, grow, and expand their capabilities. Rather than focusing only on the present and what needs to happen from day to day, connecting the current definition to the future provides an awareness of how a role can evolve and what expertise, skills, and knowledge will be required to get there. It offers a remarkably powerful way to align an individual's development with the company's future vision.

When a person is given a defined role, it confirms their presence and verifies their significance. It provides a sense of belonging and inclusion in a group or team. With a role comes a function, and one can rely on that function to contribute to the whole. The sense of interdependence can become a source of motivation to contribute and be of service to one another. This can help establish a consciousness of the reciprocity of communication and the sharing of information and ideas. Given the need for group members to communicate with one another, conveying this aspect of team performance through role definition can benefit the individual as well as others members of the group.

Finally, role definition often provides evidence of who someone is or confirms who a person aspires to be. Often such validation signifies proof of an individual's association with a cause or ideal. Often, the role doesn't need to impart status. Rather, it demonstrates that it is an extension of one's personality.

Role definitions also convey expectations about how jobs are performed, how tasks are carried out, and what is required of team members. The definition of a role can be specific to a particular area of expertise or it can be broad and apply to multiple facets of work and function.

Role definitions can include other pieces of information about how jobs and tasks are accomplished, including involvement in problem solving, decision making, and individual empowerment. Clarity of roles and the expectations associated with them help to provide a framework for individuals to interpret how they fit into how the company and how the company successfully creates and delivers its products or services to the customer.

Key #9: Customer Interface

How a culture interfaces with the customer has changed dramatically over time. Along with advances in how we market and sell, the leveraging of technology and the media, and the innovations that have propelled convenience and availability, companies have a broader set of powerful choices for connecting with the customer. At the same time, some things haven't changed that much. One constant over time is that every employee can influence customers. An assembly line worker at a car company a hundred years ago promoted his company's brand when talking about his work to others. He was interfacing with customers and influencing them.

At some point, every employee interfaces with the customer, often without realizing it. When it comes to the culture key of customer interface, how people feel about the culture of the company they are a part of will directly or indirectly influence its customers. With this broader view of everyone's informal involvement in a company's relationship with its customers, let's turn to how companies and cultures more formally organize their interfaces with the customer, including how a company arranges and systematizes its functions and teams to execute its vision and strategies.

Two important aspects of alignment need to be considered. The first is the culture and how the organization of customer interface aligns to it. The second is how well it aligns to the brand intention, including how the product or service is delivered to the customer and what that experience is intended to look and feel like. Depending on the product or service, the company may place responsibility for customer interface with a few select individuals who perform that function on behalf of the whole.

It may serve a company well to take a team-based approach through which several employees work together to interface with the customer. If the intention is to develop consistent ongoing relationships with customers, team structure can work very well. Over time, it allows the customer to interface with the same group of people and enjoy a set of predictable relationships.

Another form of teaming, aimed at offering multiple forms of expertise and competency in service to the customer, is an approach similar to that taken in project management. While it may appear unplanned, it allows the customer to interact and have access to those with specific expertise, proficiency, or knowledge. This aligns well when the product or service being delivered conveys a high level of technical or subject knowledge. By directly delivering a high level of specific competency, the customer is influenced to have an increased level of trust.

Companies can also adopt a more fluid design, an informal approach through which any company member interested in working with or more intentionally selling to the customer has the opportunity to do so. Often, this allows those who have a natural desire to interface with customers to do so, even if they have other role responsibilities. Employees are given the choice and can empower themselves in a manner that is mutually beneficial. For people who have been in jobs with limited or no interaction with customers, working in a culture and structure that conveys such empowerment offers the opportunity to explore new opportunities and develop customer service skills.

Companies exist to sell and deliver a product or service to its customers. When a company's customer interface is misaligned, the customer experiences it. Unfortunately, this happens all too often. A mistake made in organizing customer interface is to overly focus on the internal workings and processes of a company, leaving out the most important part of the equation—satisfying the customer.

Key #10: Teamwork

There are a great many definitions and approaches to teamwork. Most companies include teamwork as one of their values and beliefs. If it's not listed as a core value or belief, it will show up in how the company describes itself. Its importance is obvious. Bring together two or more people with a common goal and you have the basic ingredients of a team. From there, it's just a matter of scaling it. Without teamwork, things don't get done.

Teamwork is natural to human beings, yet success requires a great deal of effort because the quality of the outcome is a reflection of the quality of the team's members. It's easy to bring people together; the challenge is the teambuilding that follows. To create an aligned and high-performing team requires dedication and commitment to developing successful relationships among the members.

A high-performing team is an aligned group of individuals committed to creating extraordinary results for themselves and one another.

The fundamental characteristics of high-performing teams that support the alignment of its members are:

• A focus on results
• A strong team culture
• Aligned leadership
• Open communication
• High-performing members
• Assessment and improvement

Most other aspects of teamwork, including trust, mutual respect, constructive conflict management, and decision making, fit into these six characteristics.

One specific definition of high performance does not fit all teams. A team that works best aligns the ideal team member to the other characteristics of the team, its values, and its goals. This means that the right fit can only be defined when one knows what the team's culture team is or is intended to be. This includes how an individual is expected to communicate, assume responsibility for results, and work with fellow team members. Every team has a definition of what it means for members to get along with one another.

The definition of a high-performing team member stems from its uniqueness. While some of the characteristics of teamwork remain consistent, every team is unique in, among other ways, how power and influence, reward, decision making, problem solving, and conflicts are managed. When multiple teams function similarly, there tends to be greater alignment than when they operate differently. Being able to distinguish the likenesses and differences is often required when teams work with one another. The larger a company, the more complex the team-to-team relationships may be. This is why using teamwork as a key to alignment is so valuable.

Three primary approaches provide an initial framework. The first is organizing a team based on expertise, competencies, and areas of specialization. Larger companies accomplish this using approaches adapted from project management, which allow more flexible frameworks for teaming and moving people from project team to project team to take advantage of their expertise and specific competencies.

Another way to see this is through a matrix structure. A focus on leveraging specific competencies and expertise areas can also result in teams that are centered on a certain content area or are organized to perform a particular function, such as a team of designers in a product development function or an in-house sales team where each individual is responsible for his or her own performance. The key characteristic that creates individual-to-team alignment is the demonstration of expertise, competency, and knowledge.

Another primary approach is cross-functional teams. In these teams, role definitions generally require that members be generalists rather than specialists. For example, in a human resources team, members might move in and out of various roles and jobs, including payroll, benefits administration, recruitment, training, orientation, and employment law compliance, even though each requires a certain level of expertise and knowledge. In smaller companies, the generalist or small group of generalists cross-functionally meet the overall performance expectations of the team, often filling in for or helping one another. Characteristics that are looked for and align an individual to the team are a willingness to collaborate and build consensus, placing a priority on contributing to the performance of the team, and an ability to move in and out of the various roles within the team.

The third primary form of teaming focuses on individual freedom and the alignment of each person's contribution to the central cause or ideals of the team. Often in a hybrid fashion, team members have a great deal of autonomy and can take both generalist and expertise-oriented roles. What differs is the motivation of the group and how it is brought to life through the team members. The key characteristic of alignment is whether they demonstrate a commitment to the idealistic values and goals of the whole.

These three approaches create a point of reference and a framework through which you can identify the traits and characteristics of team formation and alignment. Remember that every team is unique; the more aligned a team is to its desired goals and outcomes and the more it is focused on results, the better it performs. The more open and informal the communication, the better its ability to confront and effectively deal with conflicts and disagreements among its members. And, the more openly members of team communicate, the better their ability to assess how the team performs and how to improve.

Two other aspects of teamwork are worth mentioning. The first concerns external relationships. The better the members align and work with one another, the better they typically work with other teams, groups, and customers. Sometimes other teams and people in a company are a team's internal customers. Whomever the team is interacting with, maintaining productive and healthy external relationships is important to success; resources, communication, information sharing, and collaborative relationships depend on it.

A second aspect is related to leadership alignment. Leadership has a high degree of influence on the culture of a team and how well it is aligned. High-performing teams generally have leaders who are aligned to how the team plans, makes decisions, solves problems, and carries out the other aspects of teaming and performance. Leaders also influence how team members align their behaviors to the values and beliefs of the team and a company, which is critical. Too often leaders are misaligned to the teams they lead. As we'll explore in Chapter Ten, aligned leadership is essential to overall alignment and a vital factor to success.

Key #11: Structure

When it comes to the structural alignment of a company, structure follows form.

Frequently, leaders and their companies fall into the trap of over-relying on experiences, models, and frameworks in building and running companies. One of the most alluring pitfalls is organizational and team structure. Maybe because it has been done so many times or because we have organizational charts burned indelibly into our brains, our ideas about how to organize and structure companies into functional components is given the least amount of creativity and forethought. Many leaders design and structure their companies in two interesting ways. One is from the inside out. While this allows them to focus on the operational elements of how they create and deliver a product or service, it often fails to put the most important aspect of the business—the customer—out in front. As a result, the organization's structure ends up misaligned to the customer experience, and the company may struggle for a long time to overcome this. Even if the company succeeds, it may still not be working as well as it could. The evidence of misalignment are the problems and conflicts that are constantly at play between the various parts and teams within a company, its individual members, and its customers.

The second is adopting the design and structure that works for another company, and which is unlikely to fully align with and serve yours. The structure of a company like Whole Foods differs from Wal-Mart's for good reason. They have different brand intentions and customer expectations and interactions differ. Their supply-chain systems differ and require distinct approaches to organizing and aligning their workforces. They also differ in how teaming takes place. Wal-Mart separates employees into functional units and groups, each with its own goals and responsibility resting with the leader. Whole Foods is structured around teams. Each store has an average of ten self-managed teams with a designated leader. The leaders and team members share group responsibility for leading the store. Wal-Mart has its own organizational structure, forms of teaming, cultures, and brand intentions. Customers buy from the company for different reasons. While both companies are very different from one another, they are both very well aligned.

The successful design and implementation of an aligned structure requires focusing on three key aspects: (1) how the company interfaces with the customer; (2) how the work of creating and delivering the product or service in alignment to the brand intention is done; and, (3) how its members team with one another. The structure of a company serves best when it is aligned to the culture. When the culture is forced to work within a misaligned structure, people seldom perform to their full potential. An aligned company or team structure is a vital ingredient to a healthy company.

Key #12: Aligned Values

The last of the twelve alignment keys is certainly not the least important. All twelve are important. When necessary, each takes on a role of greater significance in the alignment of your company's culture. However, the alignment of values is often not given enough attention. This, despite the fact that in many instances, leaders and managers are not given more than of values and beliefs through which to define their cultures.

When it comes to leading culture, aligning values is essential. It's simply not good enough to hang the words on the wall, post them on your website, or repeat them at company meetings. For people to understand and take responsibility for them, leaders must talk about them constantly and consistently. They must explain what the values mean, what they represent, and how significant they are to the company's culture. Leaders must role model and relentlessly reinforce them. The core values of a culture cannot be overstated, overcommunicated, or overly reinforced. They are that important. Values define the core of a culture and describe the intended human experience.

What follows are three commonly used words that are frequently employed as company values, along with three distinct interpretations of them which. While some commonalities exist, they also provide significantly different intellectual and emotional responses. Once you've read through these examples, look at the words used to describe your company's culture and perform the same exercise. The goal is to clearly articulate for your culture the meaning of the words that are your core values.

Empowerment. Definitions of empowerment are as wide ranging as its meaning within the context of culture. Empowerment often means that someone is given permission to act. For example, a construction company is working to improve its safety record and wants supervisors to take greater responsibility on job sites. In the past, supervisors feared criticism or negative feedback for slowing down progress and were afraid of being thought inefficient or less cost effective. As a result, they hesitated to stop workers to make changes or to commit the time and resources required to do things differently. After a series of worker injuries, the company's leadership told supervisors they could, if necessary, stop the work that was being performed and make changes that would increase worker safety. They were also told that, prior to taking action, they should first check with their respective managers. Workers who identified risks were also empowered to take their concerns to the supervisor. In this culture, empowerment is synonymous with permission granting.

Another example involves an onsite software development firm where small groups, led by a team leader, worked directly with the customer. At times, the teams hired extra help to meet deadlines or respond to specific requirements because the CEO believes that customer service and meeting project timelines is critical to success. He repeatedly communicates the view that team leaders, as well as onsite team members, are empowered to do what it takes to please the customer without asking for permission, including hiring to get the project done on time and meet the project requirements. In this scenario, the definition of empowerment is the authority to make decisions.

The president of a hospitality company tells stories of empowerment to employees at its properties. She continuously stresses the idea that anyone in the company, regardless of their role, can take action or be of extraordinary service to leave a lasting impression on a guest. One evening, a mother arrived at a location with two children. The father had stayed behind to deal with a medical emergency and promised to join the family at the hotel en route to the hotel, his car broke down, and he was stranded in a small town over two hours away from the hotel, where he needed to wait until morning to have his car repaired. When learning of the family's dilemma, a front desk clerk decided to make the more than four-hour drive to pick up the father and bring him to the hotel that night. He also connected his guest with a local mechanic to have the car towed and repaired. In this culture, the definition of empowerment is to be inspired to be extraordinary.

Respect. In alignment to culture, the word can give attention to one's competency, one's rank or authority, the behaviors associated with mutual respect, or reciprocity. The three scenarios start with the same set of characters and the same challenge.

The setting is a conference room in the main building of a healthcare company. The company's four core values of Respect, Teamwork, Excellence, and Quality Care are prominently displayed throughout the facility. The CEO is meeting with his executive staff to talk about his decision to hire a new chief medical officer. The CEOs choice for the position, an outside candidate, is not the group's preferred choice. The members prefer an internal candidate whom they believe, based on over six years with the company, is a better match. The CEO thinks the outside candidate is a better choice because he has already held a similar position.

In the first scenario, the CEO shares his decision with the members of the executive team. When asked for their thoughts, a few share their opinions. The CEO voices his disagreement and soon the team members are arguing. The CEO is unwavering in his decision. Eventually, the CEO and the group turn to one executive and ask for her input. In the past, she has been a good source of insight and has held similar positions to the one being filled. When asked for her expert opinion, she shares a number of factors with the team and recommends the company hire the internal candidate. The CEO respects her expertise and has confidence in her choice. He realigns his position, and the hospital hires the internal candidate. In this culture, the meaning of respect conveys deference to one's expertise, competency, experience, and proven capability.

In the second scenario, the CEO starts the meeting by sharing his thoughts and explaining that he is leaning toward hiring the external candidate. He then invites the members of the executive team to share their opinions. The group, including the CEO, is soon engaged in a dialogue. They ask questions of one another, ask for more information and thoughts, and make sure that everyone's perspective is heard and understood. In the end, the team, including the CEO, make a shared decision to hire the internal candidate. In this culture, the meaning of respect is assuring that everyone is engaged with one another and heard.

In the third scenario, the CEO shares his decision with the team and asks if anyone has a different opinion. In the days leading up to this meeting, several members of the executive team have discussed their preference for the internal candidate. When asked for their opinions in the meeting, a couple of the executives briefly share their thoughts and opinions. Showing respect for his role and position, they look to the CEO to make his decision. He tells them that, acting in the best interest of the hospital, he has decided to stick with his decision to hire the external candidate. In this scenario, the meaning of respect is deference to position, title, or rank, and the authority that accompanies it.

Trust. This often-used term has multiple meanings and applications, particularly because of its significance to customer relations. For example, a team member asks a fellow member to contribute to completing a project on time. He agrees, and she stresses the importance of his contribution by telling him that she trusts he'll get it done. In this culture, trust means being able to rely on another person and be confident they will follow through.

In another scenario, a manager asks an employee to take on a very demanding set of tasks that have a high degree of risk associated with them. They require a high level of decision-making capability. He has chosen to delegate them to her because of her strong competencies. While committing to the challenge, she expresses her concern about the complex nature of the work. He tells her that he trusts she can do it. In this culture, the meaning of trust is having confidence in someone's ability, competency, and know-how.

In the next example, a team is quickly coming up on a deadline, and several of the members are concerned about whether or not the team can come together to meet its goals. There have been several conflicts along the way, raising doubt about how committed everyone is to meeting their responsibilities. To be successful, each team member must deliver his or her individual contribution. As the deadline nears, one team members pulls the team together by sharing his belief that if they focus on emotionally supporting one another, the deadline will be met. In this culture, the meaning of trust is having faith and believing in the possibilities.

Finally, an employee approaches his manager for feedback. He was recently given a new and challenging assignment, was second-guessing his capabilities, and had doubts about how well he was doing. He not only agreed to the new assignment as an opportunity for career advancement opportunity; he also accepted it to advance financially and improve his family's living conditions. If he finds that he is not meeting the expectations of his manager, he can take action to avoid the negative consequences of failing. He asks her to be honest, telling her that he trusts that she will be truthful with him. In this culture, the trust is people being honest with one another.

As you can see, the words we use to define values and beliefs come to life through human behavior and interaction. Earlier in this chapter, as part of the definition of culture, I indicated that culture could be defined as how people treat one another. Much like promises, a culture's values and beliefs offer a consistent perspective and shared sense of how people in a company or team treat each other and how they treat the customer. As with any promise or expectation, it's very important to bring values into the spoken realm and to explore what they mean. This is an ongoing obligation of leaders and a requirement of those they lead.

TUNING THE CULTURE KEYS

The twelve culture keys are not the only ingredients that define a company's culture. If you look closely, you may find that there are traits specific to your culture that can be keys for alignment. The twelve keys are a framework—a common set of characteristics—you can use to observe and measure your culture and the culture of any company or team offer a great start in the right direction.