Why Culture eats Strategy for Breakfast

Companies and managers alike are always looking for ways to improve. Feedback conversations with employees are being held on the regular, but often they forget to utilize one group that is very important; the people who leave.

In the world of progress, nothing is as important as reflection. You need reflection to look back and see where there is room for improvement. Many managers and companies are already capitalizing on this by holding regular feedback meetings and one-to-one meetings, where both employees and managers openly speak about their experiences. If you are not doing this, then start doing it. Tomorrow. Seriously. The easiest way to improve your company is by tapping into the knowledge of your employees, so don’t let their talents go to waste. In this blog I will not pay attention to that, however. In this blog I will go into the importance of the feedback of the people who will actually leave your company and show you what you can learn from them.

Let’s start with: why?

Well, firstly, people who leave your company have nothing to ‘lose’, so they will be very forthcoming with what they think. In normal feedback meetings, employees are encouraged to be as open an up-front as possible. Although this sounds great, experience teaches us that employees can be a bit hesitant into saying everything that is on their mind in fear of retribution. This factor of retribution is not present at an ‘exit interview’, so your ex-employee will be open and honest.

Secondly, it is important to note that you can learn a lot from the reason why the employee is leaving. It might be possible that this new information helps you to prevent others from leaving for the same reasons as well. Often managers make assumptions as on why employees leave, instead of actually asking and understanding why they leave. This way they cannot effectively deal with possible problems in the internal organisation. Therefore, it is important to find out the true reasons in an exit interview.

Thirdly, it is important for your employer branding as a part of the employee experience. In an exit interview you can take up all sorts of matters which require closure before the employee leaves. Perhaps there are conflicts that need to be settled, equipment which has to be returned, or ongoing confidentiality clauses which have to be signed. Most of all it is a moment for your employee to reflect and express their thoughts and feelings. It is always good to give your employee the feeling that they are being heard, but it is even more important to actually listen (and act).

Still not convinced that it is important to have these exit interviews? Here are ten more reasons.

What to ask?

As said before, the main goal is to find out what the motivations are of the employee who leaves, but it is also good to unravel other possible problems in your organisation. So don’t be afraid to ask creative questions. Don’t make turn the interview in a acquisition and the atmosphere light-hearted to get your ex-employee to really open up. When having these exit interviews, then it is good to keep the questions uniform. Make sure that you are asking everybody the same questions, so that you can actually use the results. More on that later.

Here are some examples of questions that you might want to use:

• What is the reason you are leaving us? (obviously)
• Could you list a top three of reasons why you are leaving us?
• Is there anything we can improve as a company? Performance or cultural wise?
• Is there anything that your own department could improve?
• Is there anything that your manager can improve?
• If you would be owner of this company tomorrow, what would be the top five changes that you would make?
• If you would go back to the beginning of your time at our company, then what would you have liked to see differently during your time with us?
  

What’s next? Data.

Now that you know why it is important and which questions to ask, it is time to get to the interesting part: the data. To get an organised set of data, you will need to try and standardize the answers given by the ex-employees to get a clear picture. For example, if you ask the question “Why are you leaving us?” then you can get a very variety of answers as it is an open question. However, you can label the answers given so you can detect patterns. Answer labels for this question could include: “Atmosphere within company, Development possibilities, Prospect of better benefits, Personal reasons” etcetera.

One or two exit interviews will not give you enough information if you are dealing with possible internal problems. That is because it could just be that the couple ex-employees that you have interviewed might hold a grudge against you. However, if a certain pattern appears when more and more ex-employees point to the same problems, then you cannot hide behind the excuse of a coincidental common grudge anymore. So, volume is key here.

After having the right labels and enough volume, you are ready to analyse the data and draw the right conclusions to improve your company and tackle possible problems.

In conclusion

You should always hold exit interviews, not only because it adds to the employee experience, but you can also actually learn from them. This information can be valuable to retaining your future talent, tackle possibly hidden problems, and improve your company performance.

Do you need help with holding exit interviews, analysing the data, or implementing solutions to newly discovered problems? Get in touch with us and see what we can do for you.

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When we think about culture, we think about HR departments who coordinate culture related projects and value determining group activities. However, culture adds more value than it is often credited for, also for the marketing department.

Let’s say you believe that there is some value in culture, but that it is not that important for your company. Let’s even say that you do not care about internal atmosphere or how productive your employees are. Let’s even go so far to say that you believe that, as long as everybody just does their job, there is no need to really worry about culture. Even then, even if you do not care about these internal factors, then there is another reason why you should worry about your culture: it directly affects your branding as a company, and could either be beneficial or detrimental.

Wait, what?

Yes, you’ve read it correctly. Culture, an internal challenge, will determined how you will be perceived externally. Let’s do a thought exercise. Think about a random company you’ve ever been in touch with. How did you perceive your interaction with that company? Positive? Negative? And what shaped that interaction? Was it the designed marketing message on their website? Their advertisements? Or was it the interaction with their customer service-, helpdesk-, or sales representative? More often than not, our opinions of companies are shaped with how we interacted with individual employees. How those respective individuals interacted with us is heavily dependent on how the internal culture and values are set up. For example, a company whose culture is shaped around serving customers will most likely have employees who are more pleasant to interact with, as consumer, as opposed to a company whose culture is shaped around following rules. This is, in a nutshell, why culture also matters for your branding.

But how does this work in practice? How can you set it up and what do you need to do to improve your branding?

The foundation

In core culture is a mixture of individual behaviours and values. These behaviours and values get translated into how people act and the sum of all these actions is what we call culture: how people behave and interact with each other. It seems therefore that culture is pretty much determined and that there is little that you can change. This is partly true; you cannot fully control culture and it sometimes grows organically. However, good behaviours and values can be stimulated and bad behaviours and values can be discouraged. So, you cannot steer culture as much, but you can nudge it in the right direction (Do you want to read more about the power of nudging? Read this article). This means that you can mould your culture towards the desired internal driver which aligns with your external message. For example, the marketing message: “we are service champions” should align with the internal value “being service minded”. Easy right? Wrong. Adjusting culture is hard. It is a time-consuming process and the people involved are often stubborn and hard to convince.

Turning the idea upside down, you can also see how internal culture will affect your marketing message. If you have toxic values within your culture, this will also translate in how your image will be conducted outwards. For example, if rules come first and customers always come second, then your customers will notice this when they interact with the people within your company. So, although culture and marketing seem worlds apart from each other, they are actually closely related and interconnected.

If you still believe that this is all ridiculous, then think back about the thought exercise. Think about how your perception was shaped, who was involved and what they did. You can deduct their actions back to motivations which are shaped by behaviours and values. That is culture.

Getting it right

What happens when your culture is actually aligned with your marketing message? Well when culture and marketing interlock and supplement each other, that is when you utilize culture to its fullest extent. The result is often noticeable in increased customer satisfaction. Depending on your culture, marketing and goals, it can either: drive sales and/or improve service and/or expand operations and much more. Culture can motivate your employees to go above and beyond and to reach goals which seem unachievable. As your employees feel part of something that is bigger than themselves and the message that your brand displays, they can create something bigger than just the sum of their efforts. Does this still sound a bit vague and fuzzy? Forbes has ranked 50 companies with a great culture (read more here). What do we see? In the top 4 there are 3 companies (Microsoft, Zoom & Google) which are extremely successful in their industry. This is, in large respect, thanks to their outstanding culture which motivates their employees in a positive way. Their stimulating culture increases collaboration, customer satisfaction, service, but most importantly: the growth of the company they are working for.  

In conclusion

So where do we stand? Well, firstly it is important to repeat the mantra: culture eats strategy for breakfast. The importance of culture cannot be overstated enough, not only for your internal atmosphere but also for your external brand. HR herein has to play a more central and steering role within a company and not just “that office where they do the administration and stuff”. CEO’s and directors have to be made aware of this as they need to give HR a more central role. You see that this already happened at companies with a thriving culture. Now how to set it up is more difficult to explain, mainly because it is entirely dependent on the situation and environment of your company.

If you want more information on how to unlock the power of culture for your company, then get in touch with us and see what we can do for you!

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In the last post, I discussed how culture eats strategy for breakfast, which is almost a well-accepted mantra in the business world. If I elaborate on that train of thought, then I believe we can almost certainly say that culture eats processes for lunch and dinner. Not only because processes are the consequence of a strategy, but also because we even look at the theoretic idea of a process versus the practical application of a process.

A strategy is an overarching plan for an organization on how to achieve its business goals. From the strategy, we derive tactical and operational plans and create processes to ensure that we achieve the goals of those plans as efficiently as possible.  

When we look at the general idea of a workplace, we see that the overarching framework for a lot of workplaces is very similar. People travel to an assigned geographical location, have a time that they start and finish, have colleagues they work together with, and collectively they work towards an objective. Apart from that, professions differ in a lot of different ways. A police officer has a distinctively different set of tasks and responsibilities than a receptionist or software developer. Still, they have a lot in common too. One major thing that most jobs have in common is that they must deal with a lot of ambiguity. Whether you ask a police officer, receptionist, or software developer what they do on a daily basis, a lot of the answers boil down to a variant of “every day brings new unforeseen challenges”. It is hard to describe daily activities as they can vary immensely. No day is the same. Still, each one of those people knows what is expected of them in various situations. They know how to behave, even when the situation is new to them.  

Structures & Processes

One way of dealing with this problem is to build processes that give people guidelines on how to act in different situations. These processes are good to show other organisations on how you intend to run your businesses. A prime example of this is ISO certifications. Huge amounts of documentation on how an organisation has set up its processes to be able to guarantee a certain level of standardization and quality. But even the detailed documentation of ISO certifications leaves room for interpretations and ambiguity and requires employees to be adaptive and creative. Do not get me wrong; ISO certification can be critical for organizations to improve both the quality and efficiency of their work. I merely argue that it is not the ultimate tool for guiding your employees in their everyday work. These are often sophisticated texts and process flows to guide individuals on how to deal with complex issues, hidden in manuals or quality support systems. Only a small proportion of people have read these manuals and to make matters worse the theory always slightly differs from reality. This means that we need to give our people more guidelines on how to act, even with ambiguity and ever-changing situations.

Culture to the rescue

This is where culture comes in. I have already extensively talked about how decision-making, culture, and empowerment are correlated here. But besides taking decisions, we also behave in a certain way as people. Our behaviours are shaped by motivations, that which drives us individually, and by what is acceptable in a group, that which drives us collectively. As I am not a psychologist, I will not speculate too much here on how individual motivations are shaped, but as an HR specialist, I can tell you that group behaviours form and are shaped by company culture. In other words, as a company we cannot determine the motivations of an individual person, however, we can influence the overarching culture of our organisation. The culture that we create will in turn influence group behaviours, which in turn will influence individual behaviours and decisions.  

By creating the right culture, we can create the right group behaviours which will provide guidelines for individuals on how to behave and make decisions. This is the set of guidelines that help people make consistent decisions despite ambiguity and ever-changing situations. A good example of this is the cultural value of Facebook “Move fast and break things”, which got adopted by a lot of small fast-growing companies. Why? Simple: these companies often lack the structure to properly guide their employees through their decision-making process. A company value like that shows your employees that they should not be afraid and wait too long with making decisions. They are rather encouraged to rely on their own strengths and “Move fast and break things” instead of “Going slow and steady”.  

Although I am not arguing that this is a good cultural value (Facebook had to roll back its original bold value), it is a clear guideline and message to people on how to act in unclear situations that demand adaptability and creativity. That is something that processes can never give your employees. Processes can only help you with the predictable, but culture can help you with the unpredictable – and remember it is the case for most jobs that “every day brings new unforeseen situations”.  

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