2. Purpose and Values are Powerful Tools… and High Maintenance
LEADERSHIP AND CULTURE
Creating More of the Results You Want
Introduction
I have been putting my thoughts about leadership and culture down on paper in a series of short, easy-to-digest essays. This is the second essay in a series of six. If you’d like to know a little about my background and inspiration, my website includes a section that summarizes my experience and key influences (http://www.2m-spaces.com/about-michael-p-mack/).
2. Purpose and Values are Powerful Tools… and High Maintenance
In terms of generating results, most CEOs would acknowledge that purpose and values are somewhere between valuable and essential for creating a high-performance organization. And many CEOs would say that purpose and values (as well as the way these elements show up in the organization, leadership and culture) are the most powerful tools they have to drive superior sustainable performance.
There are wonderful examples of companies that achieved this type of performance, such as Starbucks, Zappos, Chipotle and Whole Foods (even though the latter two have had some challenges lately). And yet, at most companies, leadership and culture are rarely well managed, even when their leaders recognize the importance of leadership and culture and are aware of the potential for superior financial performance.
There are two primary reasons for this mismanagement. The first is obvious. Unlike typical financial metrics (like sales, average price and cost per unit), leadership and culture are difficult to measure. Many companies are not willing to do the work to identify the measurements and track and interpret them. The second and I believe more important reason leadership and culture are not well managed is that great management requires profound changes from the company’s key leaders. What are those changes?
One change is to fully comprehend the fragility of power of an organization’s purpose and values, the fragility of its culture. All too often, CEOs will get the company’s purpose and values/culture initialized but fail to recognize the erosion caused by various forces such as:
Time—as the honeymoon ends, people are less inspired by the newness, and less desirable behaviors emerge.
Geography and the resulting reduction in face time with senior leadership.
Growth and failure to introduce new hires to purpose and values/culture as effectively as the original group.
It’s critical for the CEO to ensure that there is a systemic approach to provide initialization as well as replication and sustainability to the purpose, values and culture.
Additionally, when thinking about changing the way an organization functions, most leaders continue to think in terms of the development of the organization, functional area or team. Yet, development (the catalyst for change) occurs first not at the organizational level but at the individual level. The notion of “organizational development” is misleading at best because the increased capacity to create results occurs on the individual level and shows up as improvements in the way the organization functions. And it only takes one person’s shift in approach to impact the way the entire group behaves and functions. This reality leads to the following challenge for each of us as leaders: “How can you be that leader for your organization rather than waiting for everyone or anyone else?”
Creating, replicating and sustaining a high-performance culture driven by increasing adherence to purpose and values requires time and effort. Perhaps for each of us, the most important place to start is with ourselves, our commitment and our courage.
Suggested Next Steps
Get clear about what you want to be different in your organization and your role in making that happen.
Understand what shift in attitude, perspective or behavior will best support your desired outcomes.
Find a mentor, coach or trusted colleague to be a resource in your mission.
Practice.
Contact information:
Michael P. Mack
M: 619.990.5300
W: 2m-spaces.com
