Hot Topics: Creating a 'Good' Culture by Design
With the Corporate Regulator considering prosecuting companies for 'bad' culture in the financial services sector, there is an increasing need to define what 'good' culture is and to work out how to implement, foster and maintain it within the industry's workplaces.
For this week's hot topics panel we ask Dr Dimity Podger, a specialist in the area of company transformation and Libby Roy, VP and managing director of Paypal Australia - which in 2014 was voted as one of Australia's best places to work - how they believe it can be done.
Libby Roy
Vice President and Managing Director, PayPal Australia
How does a company define what a 'good' culture is?
A good culture is all about having engaged employees who are more than just happy employees-they are the drivers of change in the organisation, they are aligned to the company's purpose and vision, and they are constantly learning.
Once defined what steps are needed to integrate those standards into the operations of a company's workforce?
Globally we have a clear purpose, values and behaviours that we regularly remind employees of and drive at a local level in Australia. This ensures that employees feel like they are part of the future of the company and have a role to play in how we succeed and do right by our customers' every day. We also really strive to make our employees feel that they are more than just a headcount but actually a valued person who contributes to the team.
How best are those standards fostered and maintained?
Regular engagement with employees is imperative to help them realise the role they play in the future of the company as it evolves. We also take employee feedback very seriously and run an annual Pulse survey that gives employees an opportunity to evaluate how we are tracking in regards to our culture. The outtakes of this survey are reviewed in detail and we make changes to address any concerns that arise. By regularly evaluating how we are tracking we are able to maintain our strong culture moving forward.
Libby Roy was appointed Vice President and Managing Director at PayPal Australia earlier this year. Click here to read our interview with Libby when she commenced in the role.
Dr Dimity Podger
Director, Barasa Consulting Group
How does a company define what a 'good' culture is?
Companies that decide to make a cultural shift towards "doing right the right way", embark on a journey that involves both personal and organisational transformation. Creating a purpose and values-centric culture that employees and customers can be proud of and love involves each person and the collective.
There are some first steps you need in defining your path forward:
Be crystal clear on the foundation and pillars of the culture you want to create that will inspire and motivate everyone - employees as engaged co-owners, customers as advocates.
Identify your desired higher purpose, "the doing right" part for your customers and employees and what purpose is currently lived.
Create a Values Blueprint™ "the right way," that maps out the values and behaviours that need to be lived so you can deliver on your purpose. This can be a highly participatory process. It can also involve a smaller nominated group including the senior team, key external stakeholders and respected and trusted peers from all levels of the company. Leaders need to be 100% committed to the process and be open to genuine collaboration.
Once defined what steps are needed to integrate those standards into the operations of a company's workforce?
Your purpose and values will guide all ongoing decisions: the review and revision of strategy, business model, cross-company activity, innovation approach, products and services, systems, structures, processes, leadership practices, built environment and ultimately the culture.
The next steps on your path can be broken into three:
Communicating: As often as you can, communicate your organisational purpose and values, like inviting feedback, sharing stories, reporting progress and creating videos with employees and customers.
Diagnosing gaps: It is critical to identify gaps between the culture you aspire to create and your current culture. Where is your company not aligned, where is it doing really well? Questions that help include: How are people, ideas and mistakes treated? What is the work environment like? What information is shared and what is not? What values currently guide product development and marketing activities?
Creating alignment: Create a personal and organisational transformation program where needed to ensure alignment. Key strands of this program include:
* Leadership: Support leaders and managers to be in full alignment with the values, supported by coaching, facilitated sessions, and peer-to-peer mentoring groups. This includes the Board.
* People moves: Employees will need to be transitioned out of or into leadership and management functions according to their alignment with the core values.
* Recruitment and induction: Recruit only those people who are 100% aligned with your purpose, values and behaviours. Induct employees into the culture not just the systems.
* Complaints & grievances: Establish a trusted and confidential internal and external channel.
* Rewards and Remuneration: Reward and remunerate according to performance in alignment with the purpose and values of the company. Ask employees about the rewards or 'perks' they value and want to see. Ensure remuneration packages do not drive perverse outcomes.
* Connect everyone to key metrics: As co-owners of the company, connect everyone to the KPIs.
* R&D: Review and revise product design, development, testing, packaging, marketing and selling.
* Open communication channels: If employees want more transparency, give it to them. If they want to contribute to the agenda, invite their contribution.
How best are those standards fostered and maintained?
Ongoing, you can work throughout your company to cultivate the foundations of your culture through your people and your systems. There are a number of streams needed:
* Work to create deep social connection and a culture of care among employees.
* Support leaders and managers to model the values and develop a service ethic.
* Involve the whole organisation in learning and development activities focused on living the values of the company.
* Progressively align systems, structures and processes. A collaborative platform can be invaluable.
* Continue to communicate and connect employees and key stakeholders with the metrics of the company and the culture through stories, open sharing of financials, board and executive agendas, feedback from customers.
* Evolve or begin routines and rituals across the organisation, such as weekly reflection meetings, regular culture focused newsletters, storytelling, and competitions.
* Measure and evaluate your progress. What gets measured, gets traction. Measuring the progress you're making in living your values is part of your ongoing improvement and provides opportunities to celebrate.
Dr Dimity Podger is Director of Barasa Consulting Group, a culture change consultancy based in Sydney. You are welcome to contact her by email and connect on Twitter and LinkedIn.
Want to join the conversation? Click here to comment on the post published by Dr Dimity Podger on LinkedIn.
