Cornerstone: Michigan State Capital

Friday, October 14, 2011

The Soft Stuff is the Hard Stuff

"I have also a flower," declared the little prince as he tried to describe his planet to a geographer.
"We do not record flowers," said the geographer.
"Why is that? The flower is the most beautiful thing on my planet!"
"We do not record them," said the geographer, "because they are ephemeral."


-Excerpt from The Little Prince
Authored & illustrated by Antoine de Saint-Exupery
(1900 - 1943)
Writer, Poet and Aviator




As individuals, we tell stories to each other, and about each other as a means of gaining, sharing and transmitting insight into who we are, how we operate and what kind of people we are. It's the same with companies. Culture is ephemeral - a living thing which must constantly be refreshed then passed from one person to another preserved in the form of stories.

"Corporation" is a generic business structure. The hottest ad agency is a corporation. So is a sleepy bank, so is a funeral home. We can usually tell the bank from the funeral home, and certainly from the ad agency - not so much by their corporate documents - but by the atmosphere, the attitude, the culture.


As managers, we often find it difficult to create the distinction between our [generic] firm and the [generic] competition. We suggest that this battle is begun and won first in the hearts and minds of the employees (not the customers) and it is won through culture, then through stories. If you win the "battle" with the employees, they will bring the customers and the marketplace along.


Our first job as leaders is to establish the basics: legal form, financial assumptions and structure - building, desks, chairs, etc. But maybe we're missing something. What if the new employees walked in and discovered an office filled with Red Phones - only Red? Of course, there'd be questions - "What's with the Red Phones?" [Step One]


Now the manager says: "Only one thing will make us successful: Getting on the Phones! I want you guys to eat, sleep and dream about getting on the phone with our prospects, then with our clients - to generate the business! It's so important for us that we live and die around how much business you can bring in - hence the red phones. Don't forget this! It's our life blood! Now get calling!" With that, Mark picks up his own handset and makes the first call... [Step Two]


When a recruit later joins the firm, she has a list of questions at lunch: "Where's the Accounting office? Who should I emulate? What's with the Red Phones?" The senior teammate tells the story... "I remember my first day... Red Phones everywhere... and Mark explained the deal... 'Now get calling!'... and he picked up his own handset and started dialing... there was maybe five seconds of stunned silence and then in a rush, we all sat down and started punching in numbers!" [Step Three]


Here's the formula for establishing a culture: Define, Demonstrate, Pass Along


[Step One] DEFINITION

In order for a culture to take form and shape, it must first be defined - laid down in the succinct forms of shell documents, but also as mission and purpose statements. At first it's merely a dream.

[Step Two] DEMONSTRATION

Once defined in writing, the culture must come to life in demonstration - and be proven in practice - by senior players - converting definitions and assertions into fact. Now it lives, but it's ephemeral.

[Step Three] PASSING IT ON

For proven Ideas and Actions to assume the stature of Cultural Cornerstones, they must become immortal in the form of stories - passed along from one generation to the next. Now it can live forever in the retelling.

Most companies define their point of view, their reasons for existing in their charters - where they remain buried in the generic documents that issue from the attorneys and go directly to the secretary/treasurer for burial. Seldom read, rarely understood, they don't rise to the level of getting anyone awake, much less excited. Many management teams let go of the reins right there, never taking the firm beyond the generic state. It's difficult to be loyal to a corporate form.


But what if something made that form unique? Perhaps easier to get with the program? Then what if the management demonstrated the proposition - proving its usefulness? What if they showed a little style, a little fire? Now the employees have an idea, a proven process and a story to tell - and perhaps treasure. They have a shared culture. It's ephemeral yes; but it's also immortal.


There are manuals for policies, networks for electronic communication, and departments for sales, product development and actuarial planning. There are generally accepted rules for accounting, scheduling and ways for treating the boss and the shoeshine guy, and of course; software applications for everything. We need all that concrete stuff to set us up! But to set us apart; it's all about ephemera - culture and stories.


The soft stuff is the hard stuff! Pass it on!