You Need a New Culture. But People Love the Old Culture.
By Heidi Schisel (Genentech) and Jonathan Becker (This Team Works)
In some companies, the culture is so beloved it takes on a life of its own. Southwest, Nordstrom, and Zappos come to mind. Southwest is known for its fun and hustle, and Nordstrom and Zappos for their stop-at-nothing commitment to customer service. These three are also examples of companies under pressure, facing questions over whether their highly-prized cultures are still enabling success. That’s hard: when companies face tough times, anything and anybody can be called into question. A beloved culture is no exception.
And while evolving a culture is sometimes needed to maintain competitiveness, it is not always the case. There are two schools of thought about what makes a good culture. First is the “one size fits all” approach. A good culture is a good culture, no matter what the organization. The many organizations that publish lists of best companies to work for are often looking at a single set of culture metrics, in addition to data on pay, benefits, etc.
The second school of thought is that a good culture is one that supports the company’s strategy. For example, both Nordstrom and Zappos had a strategy of winning with extraordinary service, and their cultures supported it. Culture wasn’t eating strategy for breakfast; culture was feeding it.
But nothing stays the same in business. At some point, strategy needs to change, and often culture does too. When that happens, it can divide a company. Some people take offense with this notion, feeling their leaders (especially newer ones) don't understand, respect, or honor the past culture, which to this point has enabled company success. Others might be thinking, “Finally!” They’ve known for some time we can’t pretend the status quo will sustain success, let alone build a competitive advantage.
Either way, an evolved culture can feel like a new shirt that is uncomfortable and scratchy.
In these times, leaders need to be transparent about how the needs of the business are evolving and why the culture needs to change with it. They need to be clear about what they’re looking for and recognize that the new culture may not be a good fit for everyone. They can also celebrate how a new culture will attract new talent. When change is necessary, leaders need to embrace a bluntness that might be uncomfortable for them.
To help the transition, there is a distinction that might be helpful, from NFL coach Dan Quinn. It’s true his Washington Commanders lost a lopsided game that knocked them from this year’s playoffs. But they had a great season, finishing 12-5 in Coach Quinn’s first season, with a rookie quarterback, after going 4-13 the year before.
The distinction Quinn makes is between environment and culture. The environment can be fun, light, relaxed, friendly, supportive … any number of good things. In contrast, Quinn says: “Culture for a group is all about how they do business together.” It’s about how the work gets done to reach goals. While the environment can be supportive, embracing, and timeless, culture is different. It is about rigor, accountability, commitment, hustle, competitiveness, and other attributes that drive success. And it needs to be dynamic.
In times of change, much of the environment that people cherish can often continue, even when the strategy requires evolution in the culture. Maybe people conflate the two - environment and culture - and distinguishing between them might make change more palatable. So even as you articulate what’s changing, it’s important to let your people know what’s not changing.
So how do you start this journey to a new culture?
Tell the “why” - what has changed and why we need to change
Recognize and reward employees who embody the new culture
Share examples of the evolving culture - in big stage moments and small settings
Look for ways to measure progress and impact
We want to hear from you. What tips do you have for successfully evolving business culture?