One of the all-time high favorite business books is “Good to Great,” by Jim Collins.
Collins mentions the importance of having the right people in the right seats on the bus. What Collins said is true, but what he failed to include was the environment of the bus.
If the environment of the bus which is really the organization’s culture is toxic, no matter how aligned the “right people to the right seats” are the organization will not move forward. Workplace culture is now for many SMB is becoming a recognized factor for sustainable business growth.
There are many definitions of workplace culture. For me, I believe in keeping it simple. Workplace culture is the sum total of all Experiences, Emotions and Expectations (Three Es) held by employees. These three Es generate three other Es within any culture: Energy, Engagement and Execution.
Now some of these first three Es are the result of employees who left the organizations years to even decades before. However, their presence is still actively felt. This helps to explain why the second three Es are not being generated.
For some businesses, workplace culture remains in departmental silos. One department may have a great workplace culture, but another department in the same organization may not.
Years ago I worked with a very forward-thinking leader who had to consistently fight the other department silos in a very large bureaucratic organization. She was hired to make change and yet the other leaders did not want change because it encroached on their departments and directly reflected their own lack of leadership. When the CEO left and complimented her on her results-driven, ethical leadership, she was almost ostracized because everyone else wanted the status quo. Eventually, she left and was hired to make significant change in another heavily bureaucratic organization.
Today small businesses can hire the right people for the right seats through the use of excellent hiring tools including psychometric assessments. They can also perform due diligence in having the job descriptions updated.
However, if the culture of the organization is toxic — and this includes just having one or two poorly performing managers/leaders — then these small business owners should not be surprised when their new hires leave.
Peter Drucker, noted business management guru and one of my favorites said, “Culture will eat strategy for breakfast.”
I have amended his statement to “Culture will eat execution for breakfast, lunch, dinner, dessert and all snacks in between.” If you want to ensure your business has the right people in the right seats, make sure the environment of your bus is right as well.
Leanne Hoagland-Smith is an author, speaker and executive coach. Her weekly column explores issues that impact the bottom line of firms with fewer than 100 employees. She can be reached at 219-508-2859.
