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                                             May 2012                                         1.10

 

Greetings! 

 

This issue of the Unfolding Leadership Newsletter focuses on culture. You'll find: 
  • Reflective Leadership Practice -- Can Culture Be Changed?
  • Leadership Links -- stimulating articles from across the web
  • Leadership Edge -- links to articles from the Unfolding Leadership weblog
  • Leadership Conversations -- Q & A with Ultimate Software Senior Vice Presient, Jody Kaminsky
  • Leadership Odds and Ends -- More links to foster reflective learning
If you would like to review earlier issues, you can find them in the archive. As always, I appreciate your feedback and suggestions. 

 

Wishing you the best for your reflective practice!
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REFLECTIVE LEADERSHIP PRACTICE 
Can Culture Be Changed?
 
I head for my TweetDeck panels and search for #Culture. A never-ending stream of tweets rolls by, a new one every second or so proclaiming this or that set of findings, explorations, conclusions or linked rants -- all highlighting this insistent but nebulous concept of culture

 

The longer I work with the notion of culture, the less I seem to know about it, reflecting the old joke that anthropologists -- who made the word a hallmark of their work -- cannot come to agreement on exactly what it is or how it operates. Yet, there it is, again and again, testimony to our stories, habits of thought, and languages, our very definitions of reality.

 

One of my favorite explanations of corporate culture may already be familiar to you: the "cultural iceberg" image created by Stanley Herman of TRW Systems in 1970. The iceberg highlights the difference between formal aspects of culture and those that represent its more invisible rules; rules sometimes that are directly in conflict with those formal aspects. "Formal" in Herman's vision equals the way we say we get things done; "informal" the way we really get things done. The plaque on the lobby wall says "People are our most important resource," but the below-the-waterline experience of the place doesn't come anywhere close to that, for example. Often such contradictions are "undiscussable" with the leaders of the organization, and become, "the secrets everyone knows."

 

The one thing that does get agreement is that culture, however defined, is powerful.  It influences us so deeply that when we find ourself in a new country -- or company -- we can go into "culture shock," losing the sense of personal stability and grounding that enables unconscious negotiation of our world.  In this sense culture is like our autonomic nervous system, enabling us to carry out our daily tasks without thinking about them, metaphorically akin to things like heart rate, respiration, digestion. 

 

What do you think?  Can this "autonomic" thing called culture really be changed or permanently enhanced? The cynics would say, "no," a sentiment often tied to views of authority and control.  "Meet the new boss, same as the old boss," as the song goes. But a legion of others are more hopeful.  They demonstrate
that even our desires for personal growth, something so deeply ingrained and close to the bone, can be influenced by conscious shifts of practice, new systems, and -- especially -- the behavior of leaders.  When people believe in something larger than themselves amazing things can happen, as reflected in this month's conversation with Jody Kaminsky of Ultimate Software.

 

 

LEADERSHIP LINKS  

Readings & Tools to Help You Lead  

 

* A Master of Culture Change. Polly LaBarre of the Management Innovation eXchange interviews Ricardo Semler, "the irrepressible force" behind Brazil's Semco Group and author of Maverick, the famous book on turning corporate culture upside. Her fine article encourages us to "Forget Empowerment -- Aim for Exhilaration."

* Two On Changing Corporate Culture. I found both of these popular articles entertaining and informative -- they got me thinking.  From Peter Bregman on the HBR Blog Network comes, "A Good Way to Change a Corporate Culture," and from Tom Goodson in Forbes,"How Do You Change Your Company's Culture? Spark a Movement."  An inset in the second article display's Tom's book, Uprising: How to Build a Brand--and Change the Work--By Sparking Cultural Movements.  

 

* Shifting the Culture Means Convincing the Engineers.  Long time engineer, Meng Tan discusses his effort to bring higher levels of Emotional Intelligence to employees of Google -- even the most skeptical -- in this well-developed Knowledge@Wharton interview: "Google's Chade-Meng Tan Wants You to Search Inside Yourself for Inner (and World) Peace."

 

* Everybody Knows About Zappos.  Or they should.  Tony Hsieh, CEO of Zappos, explores the foundations of radical customer service in a joyful, committed workplace culture via this three minute video, "Delivering Happiness."  If you'd like to read more, see Tony's book of the same name.

 

* Is Corporate Culture Still the Issue? Here's a short video interview with MIT Professor Emeritus, Edgar Schein, on future organizations and the need to bring "occupational cultures" together.  Schein is considered one of the foremost figures in the study of organizational culture. His classic, Organizational Culture and Leadership, is now in its fourth edition. His 2009 book, Helping: How to Offer, Give, and Receive Help, gets to the essence of what a complex world demands of all leaders now.

 

* Social Media, Radical Transparency and a Culture of Fear.  Check out this provocative article from researcher, Danah Boyd, that highlights the challenges and responsibilities of the attention economy: "Whether the digital era improves society is up to its users -- that's us." 

 

*Which Culture Is Better?  Victor Hwang, co-author of The Rainforest: The Secret to Building the Next Silicon Valley, articulates an embedded contrast in the way business currently operates in "The Opposite of Goldman Sachs is ... Silicon Valley?" Hwang's inventive ideas suggest certain cultural behaviors unlock human potential, and that in the new world "tribes of trust" will make all the difference.

 

 

LEADERSHIP EDGE
Personal Essays from the Unfolding Leadership Weblog

 

  "Ends of the Earth"  There is something dangerous and fantastic about going to the ends of the earth.  There is a place where I experience both of these qualities in equal measure -- along the road south of Cannon Beach, Oregon, just at the rise on the side of Neahkahnie Mountain.  Whoever built the road, and the pull-out to admire the view and watch for whales, left a clue on the far side of the stone retaining wall: three steps down toward a thin trail ... Read More...

 

  "A Perfect System of Misunderstanding"  In a familiar communications training exercise people draw a picture of their lives on a clear plastic sheet. The idea is for each person to use colored pens to fill up his or her sheet with a variety of images -- of childhood and family, work and profession, life experiences and turning points, values aspirations and expectations. Then in the next part of the exercise, people hold the sheet up in front of their faces and look through it at someone else looking back at them through their own sheet. How much of one another's true face can they see through these two "life filters?" ... Read more...



LEADERSHIP CONVERSATIONS

Jody Kaminsky Explains What It's Like to Work for a Truly People-Centric Firm

 

Jody Kaminsky is Senior Vice President of Marketing and Communications for Ultimate Software, where she started 13 years ago as a writer. Ultimate is a human capital management software company with products that span a wide range of services, from payroll management to talent management to global workforce insight. Ultimate has received numerous awards over the years as a great place to work. In 2012, the company was named one of FORTUNE's 100 Best Companies to Work For.

 

Founder and CEO Scott Scherr started the company about twenty years ago. In a cool, virtual pamphlet about the people of Ultimate, he is quoted about what makes a good company: "The true measure of a company is how they treat their lowest paid employee." For a sense of who Scott is and the genesis of the Ultimate Software culture, you can watch this video.

 

I became interested in Ultimate a few years ago when the company offered to share my Team Trust Survey with their customer base as part of their support for humanistic management practices. More recently, they have asked me to do a webcast on leadership (available later this year), and I noticed the company's initiation of a "People First" marketing effort. It made me curious about the culture of the company. Jody kindly agreed to share her perspectives on what it's like to work for Ultimate.

 

Q. Jody, how is the culture of Ultimate Software different from other companies?

 

A. Before working at Ultimate, I worked for a well known global company ranked near the top of the Fortune 50. The experience could not have been more different from Ultimate -- and I recall the intense juxtaposition of cultures when I started working here. I remember noticing that employees here actually put Ultimate Software vanity plates on their cars -- something that would have been unheard of at any of my previous workplaces. I could see immediately that there was a huge difference in employee loyalty and commitment -- but it took a while to understand why the cultures were so different. Where I had worked previously was traditional and hierarchical. I was a tiny cog in a huge wheel, unable to see how I was contributing. By comparison at Ultimate, I found people intensely passionate about their work. They took their work personally. I've watched the company grow from 290 people to our current size of 1,400 employees and it's clear that same profound sense of contribution I felt when I started is alive and well today; that same feeling that you, too, can make a real difference. If you want to propose a new idea to benefit a customer, for example, you can do that and it doesn't take long to implement changes. There's very little bureaucracy.

 

Q. So what is it that actually drives that passion and desire to contribute?

 

A. This gets at what we mean by "People First." Most workplaces put their customers first, or put their services first. But based on Scott Scherr's example and philosophy, Ultimate puts its people first. I think it takes courage to stand behind this philosophy, but it's also very intuitive - how can you deliver exceptional products and services to customers if your employees themselves aren't passionate about your company? Although "People First" is a new way to say it, those words are really just a better articulation of the way the company has been all along.

 

Q. So what do these words really mean?

 

A. People First is the essence of who we are -- it's our key differentiator. According to Scott's philosophy, if you want your products and services to stand out in a crowded market, then you must have loyal employees first. Not every leader or company out there gets this. There's a bunch of lip service about this in the market place, but very little actual innovation in this area. It isn't talk here -- it's the actual practice of placing people first. You see this in how people are treated. We pay 100% of benefits. Everybody has equity. We're not going to squeeze people financially (although there's been pressure from time to time to do so). But perhaps even more important there's a company loyalty to people in times of adversity. During the tough economic times of the last few years, Ultimate has been fiercely dedicated to no layoffs. This is what our CEO personally believes in and lives. And there are stories of helping employees who have suffered catastrophes, for instance in the hurricanes, people who lost roofs or houses. We call this commitment to people the "Ulti Bubble." We know that the company will stand by us. We are protected, cared for, respected, and as a consequence, loyalty becomes a genuinely reciprocal thing.

 

Q. What happens if someone, for whatever reasons, doesn't fit with this culture?

 

A. I would say that this is a self-selecting environment. You can be successful if you want to have a deep personal stake in your work. People who are looking for self-promotion or padding a resume will not find Ultimate is for them. This is a values-oriented environment -- that's what drives us.

 

And there's no question about it, this is a very performance oriented environment. Poor performance isn't tolerated. As a manager, I feel extremely accountable about that. We have a sense of ownership and responsibility here for performance across the organization, rather than mandated rules, processes, and policies applied within our separate silos.

 

Q. So do people speak up here, for example if they believe that a manager is not operating in accord with the People First philosophy?

 

A. Yes, they do, and they know those concerns will be heard. I don't know that this is the way every business could operate, but it's the natural way our CEO operates, and we're lucky because he's created this culture and surrounds himself with people who will sustain it.

 

Leadership means something different here. It means a sense of being accountable for Ultimate's success across the board, not just in one small area. There are plenty of stories about this. Just recently, a customer wanted some last minute help getting out paper W2's (not something we see a lot of anymore). A note went around saying help was needed. People from all levels and areas of the company immediately responded, including top leaders -- and we all stuffed the envelopes together. Again, it's that personal stake, and when we get things done together in this way, it's really satisfying and people feel proud.

 

Q. You mentioned earlier that perhaps not every company could operate this way. Do you think Ultimate's culture can be benchmarked? Is it replicable by others?

 

A. I definitely think it can be benchmarked, but every company will have to find their own way into it. There's a good deal of data about the connection between human resource practices, company culture, and business success; for example, in Dr. Laurie Bassi's book, Good Company: Business Success in The Worthiness Era. 

 

The key is that these practices have to be truly authentic to you. You have to form a genuine employee culture. People are not dumb. There will be a backlash if you say you have that culture and you don't actually mean it. Our kind of culture can't be layered over one that's a problem. It has to come from the leaders and it has to be genuine to who they are as people.

 

Q. Can you say more about how your culture actually affects your business results?

 

This is one of the things I find most interesting about Ultimate's approach. A lot of HR people are struggling with the way things are in their companies. Over the last few years of recession, a lot of companies have gone backwards with regard to their culture. Although you can't just flip a switch and change a culture, when people find out about us and experience the company as customers and partners, they want to find out how we did it.

 

We do intend our culture to be a selling factor, but it's surprised me how large this factor is. We know that it is one of the top three reasons people go with us. At one level, it's obvious: if you buying HR software, why would you buy it from a place with a bad culture? But at another level, one that is self-selecting perhaps, we are seeing a general shift in companies toward wanting to create the kind of culture we have. When firms experience people from Ultimate, see their commitment and passion and personal stake - keeping a customer service representative on the phone until 4 AM, for example, when they need the help -- they naturally want to know more.

 

As much as we know our culture can be a selling factor, it's not a one-way street. We're learning from our customers continuously. We have some customers such as The Container Store and Texas Roadhouse who are recognized culture leaders in their industries too -- and they've been great partners.
 
Q. And how about you, Jody?  What's your learning "edge" these days related to your work at Ultimate and your own leadership?
 
A. People First, as an initiative has been a big project for me personally. I have a great deal of investment in it.  It's been challenging and also gratifying to know these words distill something that's essential to the company's success.  My next frontier is getting the word out, letting the cat out of the bag so to speak to help Ultimate be better known.  This will require me to step up in a new way, serve more in the spotlight and move beyond the past when I saw my role as more behind-the-scenes in nature. Like many people at Ultimate, we feel called to help the company by doing things that require a certain amount of personal growth and learning. 
 
Q.  Becoming comfortable with more "spotlight" and personal "exposure" can be a significant shift for a person -- and requires some courage of your own.  But you are willing to do that for Ultimate?

 

A.  Absolutely.  For me, addressing this kind of personal leadership challenge comes full circle to loyalty and being inspired by the courage of the company itself.  Like others, I'm willing to stretch my comfort zone for the great story we have to tell.  If I didn't feel so loyal, I might not push myself in this way.  And I do think this is a measure of how engaging and powerful our culture really is -- I want to grow in order to help Ultimate grow.
 
                
LEADERSHIP ODDS & ENDS
More Links to Foster Reflective Learning

 

* Life, Films, and Leadership. Mike Hofman, previously an editor with Inc. Magazine, summarizes some great films in "Everything I Know about Leadership, I Learned From the  Movies."  Which of your favorites would you add to the list -- and why?  BTW, I came across this article via this list of leadership articles from Inc. -- lots of great material here to explore.

* Team Communications. Alex "Sandy" Pentland, Director of MIT's Human Dynamics Laboratory, shares some recent, fascinating discoveries on how high-performing teams interact in "The Hard Science of Teamwork."

 

* Again, What Is It You Actually Do? Via Toni Bowers, head blogs editor for TechRepublic, an amusing infographic on IT leaders. "Most people in IT," she writes, have struggled with others' perceptions of what they do verus what they really do."  If you are not an IT leader, my bet is you can imagine something that would work for you and your own profession. (I'm imagining a drawing/collaging exercise at your next retreat).
 
* Leadership and Customer Service.  Consultant Kate Nasser's post, "Psychological Barriers to a Super Customer Experience" isn't just about the barriers displayed by a front-line employee, but the employee's manager, as well.  Lots of lessons here for well-meaning leaders in any number of contexts, not just customer service. Be sure to read the "jaw-dropping experience" Kate mentions at the beginning -- it sets a formidable context.

 

* Redefine Your Real Power. HBR columnist and corporate director, Nilofer Merchant, offers a very smart, heart-felt essay, "Just How Powerful Are You?" that examines how "the gateways of power have changed." Read it for her (usual) brilliant examination of the issues and for her conclusion: "The act of reimagining our own notion of power might very well be central to what happens next, in our own lives, in our organizations, and in the economies in which we live."
Click the image, find a poem.
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Dan Oestreich · 425-922-2859
 
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