3% of all business owners make 84% of all private biz income. Why? They’re not covering for unknown weaknesseses.
3% of all business owners make 84% of all private biz income. Why? They’re not covering for unknown weaknesseses.
This article was published on April 02, 2011. So far, 4 people have left their thoughts. Share your own thoughts.
Great idea? Focused market? Good financial backing? Skilled employees? You’ve got it all, right? Maybe not. None of that matters one whit unless everybody holds the same core values. The numbers don’t lie – culture is the number one priority if you want to go the distance.
65% of all mergers fail and the #1 reason is because their culture’s clashed. Forget the merger – I believe even a higher percentage of small and local businesses fail because of this issue, without ever getting much past the first employee stage. We almost never pay attention to the things that matter. Why would culture be any different?
We at the Crankset Group always look at culture fit long before we look at skills. And if someone is a clearly better culture fit, I’ll hire them instead of the much more highly skilled person. It’s a no brainer. But most of us still go right to the resume’ (what I call “the tombstone”) to find out all the great things somebody did in their past lives, and never ask, “Will we want to be together 9+ hours a day for years to come?”
The Industrial Age left us with a terrible cultural legacy some have labeled the “allies” model of company culture. It was supposed to be the most evolved, but it doesn’t work.
Here’s six views of “employees” that are common in local (and giant) businesses. See which one is yours:
Community has hierarchy – somebody is in charge. But it emphasizes collaboration and true “team” – using agreed upon methodologies to achieve an agreed upon goal. Community imputes trust and creates an environment where everyone is encouraged to take ownership and make a contribution. Community members play clearly defined roles as part of a team, not behind cube walls.
Hire for culture. You can teach anybody a skill, but if they don’t believe in what you do, it’s a short-term gain with long-term pain.
What’s your company culture? And by the way, if there is only one of you right now, that’s the best time to answer the question.
Who WE are is so much more important than who people want us to be. Who are you as a company?
You’re too busy making money; no business can survive that. Your business should give you both time and money. Not just money.
I started Crankset Group out of a desire to help small businesses in the Denver, Colorado area grow and mature. It continues to mature itself as we bring a lot of the tools and practices that I’ve created working one-on-one with business owners over the years online. Now these tools and resources are available to you.
Twitter is a great way to get ahold of me or interact with me.
I’d love to let you know what I’m up to from time-to-time.
Add Your Own
Thoughts
Kris Scheben-Edey
04/03/11
Wonderful article Chuck!
You’re reminding me of almost every job I’ve had from first washing dishes in a kitchen, to working remotely over the internet. Culture, more than skill, seems to drive overall performance in a variety of ways.
Great points, and important takeaways for everyone – whether you’re an employer or employee.
Cheers,
Kris S.
nathalie
04/03/11
“To lead people, walk beside them… As for the best leaders, the people do not notice their existence. The next best, the people honor and praise. The next, the people fear; and the next, the people hate… When the best leader’s work is done the people say, ‘We did it ourselves!’” Yes, we are a great team, but then you probably are!
Chuck
04/04/11
Kris,
LOL – I’m sure we can all see at least one job we’ve had inside each of these cultures. I had one in the early 90’s where the culture shifted between 2-3 of these models all the time, which created 65%+ turnover.
Nathalie,
Great corollary between culture and leadership – culture is really just a reflection of the beliefs and values of the person at the top. And I would agree – the ideal leader is someone who sees their main job as championing the success of others – using their position to lift others up, and taking less and less of the credit themselves.
Making other people successful is always the best way to succeed.
Charles Wolff
04/07/11
Your hitting the nail right on the head. I work for one of Indiana’s largest minority owned company and I have seen people in the past hired for their skills and they did not do well here but went to other employers and have flourished and excelled.
The reason? 100% due to the culture here that they were not ready for or able to become part of.
CD