Welcome to Friday 411, issue #102. In 4 minutes, with 1 insight and 1 action, you’ll establish behaviors that shape a healthy culture.
1 Insight
Healthy cultures happen when leaders communicate specific behaviors that will demonstrate stated values.
James recently became CEO for Green Lawn Service. In his first few months there, James saw a disparity between what the business claimed to do and what it actually did.
For years, the company had claimed that its primary core value was “People Before Profit.” It was even stated on their website. When James became CEO, he noticed that, from the leadership to the front line, team members only talked about money.
Every meeting focused on contracts sold and revenue made. When a service person missed a service, the managers lamented the lost revenue rather than the customer who didn’t get what they paid for. Employees talked to each other about feeling unappreciated and undervalued, and many of them left for greener pastures. James knew that the root cause of all the challenges was Culture.
How Culture Is Formed
Culture is the lived-out values and beliefs of an organization. Every organization has a culture.
Like Green Lawn Service, many organizations have an Unhealthy Culture. An Unhealthy Culture is one in which behaviors that do not match the stated values are tolerated or even encouraged.
Leaders create a Healthy Culture when they align their company’s core values and behaviors. Healthy Cultures never happen by accident.
Today’s newsletter will walk you through how James crafted a Healthy Culture by concentrating on four specific behaviors.
Aligning Behaviors with Values
One of the reasons that James took the job with Green Lawn Service was because he, too, believed in People Before Profit. While he had a track record of increasing profitability, he believed that, if you put people first and run a smart business, profit is inevitable.
James wanted to change the Culture so that it embraced People Before Profit. An inspiring speech would alter little. Instead, he needed to change four specific behaviors to align with the values: Habits, Attitudes, Allocation of Resources, and Processes.
How James Used the Four Behaviors
Fast forward to a few months later. The Culture at Green Lawn Service had transformed. Here is how James created a Healthy Culture:
1. Changing Habits
When James first arrived, meetings began with a deep dive into Profit & Loss statements, reinforcing the company’s bottom-line obsession. James recognized the need to reframe this habit to align with a people-first ethos.
New Approach:
People Highlights: Each meeting now kicks off with employees sharing stories of satisfied customers and praising teammates for above-and-beyond service. They still look at the numbers, but they rearranged their meetings to focus on people before ever discussing profits.
2. Shifting Attitudes
The company’s old culture tolerated negative talk about customers, especially dissatisfied ones. Even leaders would participate, complaining that certain customers were “costing them money.” James knew that the attitudes toward those customers needed to change.
New Approach:
Feedback Is a Gift: James started by changing the perception of feedback. Anytime Green Lawn Service received criticism, he would say, “I’m so thankful they told us. Feedback is a gift because now we can do better.”
Additionally, the Leadership Team met weekly to discuss dissatisfied customers. They focused on solving the root issue that contributed to unmet expectations. Each member of the Leadership Team, including James, took responsibility to resolve each case.
3. Allocating Resources Differently
Historically, the company offered fair pay but few growth opportunities. Bonuses were awarded based solely on one’s ability to close contracts. James determined that the bonus plan needed to change, as did opportunities for every employee to grow and develop.
New Approach:
People First Bonuses: James continued to offer bonuses based on revenue and profit, but he reduced the size of these. He added bonuses for customer satisfaction scores. If customers wrote a positive review that mentioned a specific employee, that employee was rewarded. Managers were bonused, in part, on employee engagement and retention.
Growth Budgets: On top of bonuses, James budgeted for personal and professional development for each employee. These resources covered expenses for books, conferences, training, and networking opportunities.
4. Updating Processes:
In the past, employees treated a new customer as a routine event, lacking acknowledgment or celebration. James saw an opportunity to infuse the process with appreciation and excitement.
New Approach:
Celebration Gifts: James implemented a gift strategy. New customers received a surprise welcome gift. James also recorded each customers’ special dates: birthdays, anniversaries, graduations, etc. The whole staff would make a video singing happy birthday, sign cards for anniversaries, and send a gift to their customers’ kids when they graduated from high school.
While the process of becoming a Healthy Culture wasn’t easy or perfect, the Culture of Green Lawn Service changed over the course of several months. It moved from an Unhealthy Culture that claimed to value People Over Profit to a Healthy Culture that aligned its behaviors to its values.
As a leader, you are responsible for the Culture you create. If you want to upgrade your Culture, identify your values, then align behaviors — Habits, Attitudes, Resources, and Processes.
1 Action
Identify one behavior that will align your team’s actions with your company’s values.