Musings from the CU Suite

Written by Anthony Demangone

I stumbled upon a great article recently that discussed the role of the CEO in establishing a company's culture.

As you might expect, the article notes that today, successful CEOs see the development of culture as one of their top priorities.  But it argues against using the "burning platform" technique, which involves using or creating a crisis to spur fast changes to a company's culture.

Certainly we understand the logic that underlies this point of view: Companies full of complacent people will rouse themselves only in response to crisis. But experience and common sense argue differently. Consider what people on real burning platforms do. They escape. They barely have time to act, much less change their mind-sets and habits with a view toward long-term success. In the business equivalent, which usually involves a rapid drain of cash and profitability, your options will be similarly limited—in this case, to layoffs, plant closures, responses to the press and investors, and other forms of damage control. Like BP’s recovery efforts after the Deepwater Horizon spill, Toyota’s after the Fukushima disaster, or any plant shutdown made in response to a sudden loss of business, these traumatic activities are typically seen as a one-time event, not as a way of building for the future.

There is a much better way to overcome complacency. As a CEO or senior executive, the greatest thing you can do is to marshal an authentic sense of urgency, but not one built solely on the logical reasons that change is necessary. Rather, build an emotional sense of urgency, focusing on the values that the company cares about collectively: its way of serving customers, its desire for growth and success, its positive impact on social and community issues, and the attraction and welcome that people felt when they first arrived.

Every sustainable company culture is based, in part, on this intrinsic attraction to the work—including the way it challenges people. At some point, your employees chose to be part of the enterprise. For the most part, they liked (or loved) their profession, they felt they could excel, and they wanted to gain the personal benefits of accomplishment. As CEO, you need to capitalize on those feelings, give them voice, and encourage people to spread them virally throughout the company. This may mean discarding some businesses that don’t fit your strategy, your capabilities, or your culture. But it will also mean helping people expand (or recapture) the pride they have felt, all along, in their collective strength.

I really like that last paragraph.  I recommend reading the entire article.  It is a bit lengthy, but the topic is worthy of your time. So, do you agree?  Is a burning platform necessary to chance culture?  Or can you take the path outlined in the article?

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Speaking of culture, I wanted to highlight a great video from John Spence.  John knows a thing or two about culture, and his video is well worth your time.  

NAFCU is lucky to have John back this year to headline our Management and Leadership Institute in Philadelphia, Pa.  John kicks off the conference with a day-long leadership workshop. I sat through it last year. It was one of the best learning days of my career. Seriously. MLI will take place October 7-11. Click on the video link below to see what John has in store for you!