Archive for the ‘People-First’ Category

How to use culture to improve engagement… and more

Posted in: People-First.

Employee engagement is now a metric measured annually in many corporations.  At its most simple, it is an indicator of ’stay, say, strive’ – the likelihood that employees will stay with the organization, speak well of it to others and put in their best effort.   The word ‘engagement’ speaks to commitment to each other.  In short, engagement describes how employees feel, which can be considered the ‘climate’ of the organization.

What is the relevance of culture to an organization that is focused on engagement?  Firstly, culture is not engagement.  Culture relates to behavior, engagement (or climate) to motivation.  Culture is the patterns of behavior that are encouraged or discouraged over time.  These behaviors will either facilitate business performance, or they will hinder it.  They will either be aligned to values that will build your brand and reputation, or they will not.  Certain behaviors are more critical for certain strategies.  For example, a strategy to win market share through being first to market with new products will require a culture which encourages innovation, fast implementation and the ability to correct fast.  Engagement is a measure of how motivated people feel.  But what type of people, and motivated to what end?

For sure having people motivated is better than having them demotivated.  But what if the people who are motivated are slow moving and conservative.  How will this help your new strategy?  It can happen that when an organization adopts a new strategy, and demands a new culture, some people who fitted with the old ways actually need to leave, and these people may feel quite disengaged.

When you actively manage your culture in service of an intended business outcome, the people who you most need will become very engaged (in this case the innovators).  So high engagement is an outcome of the right culture.

In the Walking the Talk methodology, we have one of six cultural archetypes as People-First.  People-First cultures have made the decision that by placing ‘caring for their employees’ at the very top of their values hierarchy, they will best achieve their business outcomes.  For these organizations, engagement is a perfect indicator of their culture goals.  But for other organizations, Achievement, or building a more accountable and outcome focused business might be the most important culture goal.  It is hard, however attractive it may sound, to focus on more than one cultural attribute at a time.  So you need to consider the key communication message and area of focus that is most relevant for your business imperatives right now.

By focusing on this culture goal you will achieve high engagement as an outcome, but you will also achieve a whole lot more.  Specifically the business outcome for which certain behaviors are critical.  Be interested in your engagement scores, because they are a good indicator of your organization’s health.  But invest the majority of your effort in building the culture you need to achieve your business goals.  When you look up from this process, you will find that the employees you really need will be highly engaged, and the rest will either be striving to change to fit into the new culture, or go.

To offer a slightly different perspective, here is an article on culture and engagement by Hewitt, who own one of the most commonly used engagement surveys.

Why an effective culture counts more than a good one

I became engaged in a valuable conversation this week with a wise consultant during an accreditation I was running with a group who want to become partners of Walking the Talk.  She pointed out that I often used the word ‘good’ to describe a certain type of culture, and suggested that ‘effective’ might be better.  I think she is right.  A culture needs to be FIT FOR PURPOSE which means that it enables the organization to become more effective at what it is trying to achieve.  Think of it as a tool kit.

As employees, and as consultants, we are all biased towards companies which make us feel good and look after people well.  Speaking in terms of the Walking the Talk cultural archetypes, we have a bias towards a people-first culture, and might easily label this ‘good’.

There are many companies who have a strong achievement culture which many people do not find ‘nice’ places to work.  They are driven, tough and to some appear cruel, internally competitive and ruthless .  These companies are successful.  People want to work for them.  They are challenging, but rewarding (emotionally as well as financially). They fit the purpose of the company, and the purpose of the individuals.

My primary interest is in helping a company to be clear about what this purpose is, and consistent and honest in communicating this.  If the culture is working, great.  Find people who align to that.  The stronger the culture is, the easier it is for it to eject those who do not fit, and for these people to realise it is not for them.  It is easy to label a company according to our own personal value-set ‘good’ or ‘bad’.

The challenge for any change consultant, internal or external, is to play the role of devil’s advocate without labelling ‘bad’ which will inevitably create a defensive response.  Sometimes people think their culture is ‘fit for purpose’ and events show there were flaws (see BP and Goldman Sachs in recent blogs) and there is a role for those who can skillfully hold up a mirror without being judgmental.

Question 1: Does our culture help us achieve our strategic intent? (Fit for purpose?)

Question 2: Do other’s agree with this evaluation?(Feedback)

Question 3: How could our culture’s strength become overused? (Risks)