Wednesday, May 28, 2008

Culture 101

The heartbeat of any organization is the mythical culture. It is stronger than the rumor mill. It is what new associates feel most when they come on board. It is critical.

Then why do most managers and owners ignore it?

I have been guilty of ignoring culture on various occasions in the past. Sometimes it doesn’t matter in the short run. Sales targets can continue to be met. Customers can be serviced and products can be put out on time and with good quality. But, beware. Culture, specifically corporate/company culture, WILL impact every organization. It may take a while, but it will not be ignored.

As we started to get a rhythm at FabTech, I found myself detecting the underlying culture. It was not said out loud. It was not put up on signs or posters. It was not talked about at the lunchroom table. But make no mistake, it was there.

I would summarize FabTech’s culture as very customer focused, but scattered. In other words, the overall goal of doing right by customers was very evident, but not intentional.

Sixty days after our ownership change I made a very conscious choice to define and actively manage the culture at FabTech. We would make a choice to develop our culture and grow as individuals. To start with, we would present a theme of the month at each meeting. Themes such as Character, Intention, Teamwork, Honesty, Respect, Love and Trust would be part of every day.

Yes, you read it right. We talk about respect, trust and love. Now, you can imagine the looks on the faces of our associates. They thought this was more executive BS. They were resistant. However, they saw the possibilities. They saw owners who were willing to share profits and financial data in open meetings. Privately, they talked to each other that it just might work.

Sure, the fact that we instituted profit sharing and pay quarterly checks makes everyone more willing. But, isn’t that the point of profit sharing—to make everyone think like an owner and welcome change? Like Bambi on the ice, our cultural momentum can stumble. However, now FabTech has a defined and intentional path to improve customer service, product quality and profits. Most importantly, it is not by management decree, but by consensus.