Profit and Revenue are Lousy Core Values

Profit and Revenue are Lousy Core Values

by

As I mentioned last week, I am down with COVID and tired, so spending more time reading rather than working. I read Bill Browder’s Freezing Order this weekend, and I highly recommend it. However, at the end of the book, Browder says that oligarchs, autocrats, and leaders like Mohammed bin Salman are enabled by the professional service providers that help them. As I reflected on this and Browder’s allegations in his book against John Moscow et al., I had to think, why do these lawyers, bankers, accountants, etc., work for these characters? They know the abuses that their clients commit but are willing to overlook them because their clients pay enormous sums. We saw what Paul Manafort earned helping Russia in Ukraine and Jared Kushner’s recent investment from MBS, so money is the driver. However, money is a lousy core value.

Now don’t get me wrong, I would like to earn a lot of money, but I am not willing to sacrifice my core values. If money, or some proxy like revenue or profit, is your core value, you can have no other core values. Money as the core value overrides any additional core values you may claim and justifies any behavior because the behavior is driving money.

Issues with Money as a Value

So if money is the core value, then the firm attracts those who believe in money as a core value; however, that can cause other issues. For example:

  • Loyalty to the firm. If money is the core value, there is no loyalty to the firm as they will move for more money as that is their value. Also, they will do things that can hurt the firm if it brings in more revenue. Here are some examples: Arthur Andersen and Enron, Perdue Pharma and the opioid crises, Boeing 737 Max, and McKinsey’s recent scandals.
  • Loyalty to clients. Again there can be no objection to doing something that harms a client if it makes the firm more money as that is the driver. Bill Browder’s book gave a classic example of this with the behavior of John Moscow and Baker & Hostetler. If my research backs up Browder’s claims, I would never recommend Baker & Hostetler to anyone I know and any attorney there is a damaged product in my book.
  • Loyalty to colleagues. There is none because making money is all-important, so why sacrifice money to help a colleague?

Now, the scandals above made many a lot of money. If money is your driver, then great. But your legacy is what you did for others, and that is how you are remembered once you’re dead. I would not want people to say, “He was responsible for the death and damage of many.” If that is how you are remembered, many will revile you in time, and your family may start to distance themselves from you. I ran into a high school friend several years ago and mentioned I had met her father after his release from prison. She was so embarrassed she walked away and never spoke to me again. So sad.

As I reflect on all the people I have met in my career, I would say that lawyers are the most unhappy and wish to be doing something else. Now that is not all lawyers, just more lawyers than others. I think that is because many law firms have no culture and will act for any paying client. If your client is against your values, you have sacrificed them for money, which leads to unhappiness because, as we have all heard, “Money doesn’t buy happiness.”

Many of the people involved in the above are on the redemption trail, e.g., Andy Fastow from Enron. But, when you look at him speaking and think of how many people’s lives he knowingly damaged, I have to ask, does going on the speaking circuit redeem him? To me, No.

Culture is Critical.

As discussed earlier, Boeing sacrificed decades of industry safety leadership for profit. The Tory party, today, is sacrificing all its value for power. Once you go down that road, your reputation takes a very long time to return and often more than a lifetime. So it is critical to define your core values. I recommend that you determine your core values and define the expected corporate behaviors that your values prescribe. Then stick to them above all else. As Jim Collins said, “You would sacrifice profit rather than your core values.” Also, when hiring, look at where a candidate has come from, and that firm reflects your core values. It is easier to teach a skill than new values.

As you reflect on decisions, always think of your “elder” self looking back at the end of life and ask, is that how I want to be remembered?

(c) Copyright 2022, Marc A. Borrelli

 

 

 

 

Schedule a Call

Recent Posts

5 Strategic Leadership Skills Every Manager Needs

5 Strategic Leadership Skills Every Manager Needs

by | Nov 28, 2022

So often, people view leadership as a talent: you’re either born with this quality or you’re not. However, this is not always the case! In reality, good leadership is made up of skills, and anyone can learn how to improve. Some people may pick up leadership attributes...

5 Ways to Use Email Automation to Boost Traffic

5 Ways to Use Email Automation to Boost Traffic

by | Aug 25, 2022

Every single business in the world wants to evolve and grow. This will happen using a variety of techniques and strategies. In 2022, digital marketing is more than a household name, and most companies will adopt at least a few ideas when long-term planning and coming...

Profit and Revenue are Lousy Core Values

Profit and Revenue are Lousy Core Values

by | May 1, 2022

As I mentioned last week, I am down with COVID and tired, so spending more time reading rather than working. I read Bill Browder's Freezing Order this weekend, and I highly recommend it. However, at the end of the book, Browder says that oligarchs, autocrats, and...

The Downfall of Boeing: A Lesson in Core Values

The Downfall of Boeing: A Lesson in Core Values

by

I recently watched “Downfall: The Case Against Boeing,” a documentary about Boeing’s 737 Max issues, which exposed the company’s sacrifice of safety for financial performance. Over 300 lives were lost due to Boeing’s negligence, as they calculated the odds of fatalities to be small enough to ignore while working on a solution. Even after the Lion Air and Ethiopian crashes, Boeing blamed the pilots and their training, resulting in a tarnished reputation that will take years to rebuild.

Boeing’s shift in focus from its core values of safety and engineering to prioritizing share price and financial performance was a grave mistake. The company went to great lengths to hide the MCAS system from pilots and regulators, avoiding additional certification requirements. The bold spirit of innovation, epitomized by Tex Johnson’s 707 barrel roll in 1955, seemed long gone. This misguided focus led to a drop in Boeing’s share price, while competitor Airbus’ share price experienced a 34% increase.

Boeing’s actions also damaged the FAA’s reputation worldwide, as countries no longer trust the FAA’s judgment. This loss of credibility is a heavy price to pay for prioritizing profit over core values. Companies must remember that profits result from upholding core values and good strategy and systems, and profits should not be the driving force behind the strategy.

The aftermath of the 737 MAX crashes revealed a concerning lack of accountability for top executives. When Dennis Muilenburg resigned as CEO and board director, he received $62.2m in stock and pension awards, highlighting the disparity in consequences for executives compared to others in the company.

In conclusion, Boeing’s downfall serves as a reminder of the importance of maintaining core values and prioritizing safety over short-term financial gains. A company’s reputation and long-term success depend on upholding these values and learning from past mistakes.

 

(c) Copyright 2022, Marc A. Borrelli

Schedule a Call

Recent Posts

5 Strategic Leadership Skills Every Manager Needs

5 Strategic Leadership Skills Every Manager Needs

by | Nov 28, 2022

So often, people view leadership as a talent: you’re either born with this quality or you’re not. However, this is not always the case! In reality, good leadership is made up of skills, and anyone can learn how to improve. Some people may pick up leadership attributes...

5 Ways to Use Email Automation to Boost Traffic

5 Ways to Use Email Automation to Boost Traffic

by | Aug 25, 2022

Every single business in the world wants to evolve and grow. This will happen using a variety of techniques and strategies. In 2022, digital marketing is more than a household name, and most companies will adopt at least a few ideas when long-term planning and coming...

Profit and Revenue are Lousy Core Values

Profit and Revenue are Lousy Core Values

by | May 1, 2022

As I mentioned last week, I am down with COVID and tired, so spending more time reading rather than working. I read Bill Browder's Freezing Order this weekend, and I highly recommend it. However, at the end of the book, Browder says that oligarchs, autocrats, and...

The War for Talent: 5 Ways to Attract the Best Employees

The War for Talent: 5 Ways to Attract the Best Employees

by

In today’s competitive job market, attracting top talent is crucial. Here are five strategies for enhancing your hiring process:

  • value creation,
  • core customer,
  • brand promise,
  • value delivery, and
  • spreading the word.

Value Creation: Why Should I Work for You?

Clearly articulate your company’s mission and provide a compelling narrative that resonates with potential employees. Emphasize stories of career progression, exciting projects, and a supportive work environment. Ensure your entire organization understands and communicates the mission consistently. A well-defined mission helps to attract and retain employees who identify with your purpose.

Many CEOs and business owners struggle to provide a compelling answer to this question, often giving generic responses such as “We are a great company,” “We offer great opportunities,” or “This is an exciting place to work.” These answers fail to differentiate them from competitors who likely provide similar responses.

To attract top talent, CEOs should prepare a detailed and unique response that resonates with the candidate, sharing stories that showcase growth opportunities, company culture, and the exciting aspects of working at the company. By clearly articulating why their organization is the best choice, they can stand out in the competitive job market and successfully recruit “A” players.

Core Customer: Identifying Your “Core Employee”

To attract the right employees, determine who your “core employee” is by focusing on shared values and company culture. Hiring for core values ensures long-term success since teaching skills is easier than changing someone’s values. Avoid relying solely on temp agencies, as they may not prioritize your company’s culture. Instead, focus on hiring candidates who align with your organization’s values and vision.

Brand Promise: Offer More Than Just a Salary

To stand out as an employer, offer more than just a competitive salary. Consider what benefits, career advancement opportunities, and development programs you can provide to your employees. Show that you care about their well-being and success by investing in their growth and creating a welcoming environment. Innovative initiatives, such as helping new employees achieve a goal from their bucket list, can foster loyalty and commitment.

Value Delivery: Measure Employee Satisfaction

Utilize tools like NPS scores and Gallup’s Q12 Employee Engagement Survey to gauge employee satisfaction and engagement. Share positive results and employee testimonials to showcase your company’s commitment to its workforce. Regularly monitor employee satisfaction to identify areas for improvement and maintain a high level of engagement. Satisfied employees are more likely to refer potential candidates, further enhancing your talent pool.

Spread the Word: Showcase Your Company on Your Website

Your website should have a dedicated section for employment opportunities outlining your mission, core values, brand promise, value delivery metrics, employee testimonials, and available job openings. This information helps attract top talent and positions your company as an employer of choice. Update your website regularly with new job openings and success stories. A comprehensive and engaging employment section can make a strong impression on potential candidates.

By implementing these five strategies, you can improve your hiring process and increase your chances of attracting and retaining top talent in today’s War for Talent.

 

Copyright (c) 2021, Marc A. Borrelli

Schedule a Call

Recent Posts

5 Strategic Leadership Skills Every Manager Needs

5 Strategic Leadership Skills Every Manager Needs

by | Nov 28, 2022

So often, people view leadership as a talent: you’re either born with this quality or you’re not. However, this is not always the case! In reality, good leadership is made up of skills, and anyone can learn how to improve. Some people may pick up leadership attributes...

5 Ways to Use Email Automation to Boost Traffic

5 Ways to Use Email Automation to Boost Traffic

by | Aug 25, 2022

Every single business in the world wants to evolve and grow. This will happen using a variety of techniques and strategies. In 2022, digital marketing is more than a household name, and most companies will adopt at least a few ideas when long-term planning and coming...

Profit and Revenue are Lousy Core Values

Profit and Revenue are Lousy Core Values

by | May 1, 2022

As I mentioned last week, I am down with COVID and tired, so spending more time reading rather than working. I read Bill Browder's Freezing Order this weekend, and I highly recommend it. However, at the end of the book, Browder says that oligarchs, autocrats, and...

EOS is just that, an Operating System

EOS is just that, an Operating System

by

Welcome to those unfamiliar with EOS, the Entrepreneurial Operating System. This system aims to bolster businesses by synchronizing six key components that optimize operational effectiveness. These components include:

  1. Vision
  2. People
  3. Issues
  4. Traction (meetings and goals or “Rocks”)
  5. Processes
  6. Data

I advocate for EOS, as every company should utilize a system that enhances its performance. However, through my experiences working with clients implementing EOS, I’ve realized that it serves primarily as an Operating System rather than a business model that creates an agile growth company.

As defined by Wikipedia, an Operating System is “the software that supports a computer’s basic functions, such as scheduling tasks, executing applications, and controlling peripherals.” In a business context, I describe it as “a framework that underpins a company’s essential functions, like establishing a vision, assembling the right team, refining meetings, setting goals (rocks), and so on.” Although I risk ruffling the feathers of EOS Implementers®, I contend that EOS meets these criteria to a certain extent but often falls short of empowering companies to construct a growth engine.

Let’s delve into what is required to create a growth company.

 

The Hedgehog Concept

In Good to Great, Jim Collins discussed the Hedgehog Concept named after Isaiah Berlin’s essay, “The Hedgehog and the Fox,” dividing the world into hedgehogs and foxes. The theme is based on an ancient Greek parable: “The fox knows many things, but the hedgehog knows one big thing.” Collins found that those companies that became great followed the Hedgehog Concept. Those companies which didn’t tend to be foxes never gained the clarifying advantage of a Hedgehog Concept, being instead scattered, diffused, and inconsistent. 

The Hedgehog Concept is based on the questions prompted by the three confluences of questions. 

  • What can you be the best in the world at?
  • What are you deeply passionate about?
  • What drives your economic engine?

The EOS Model® doesn’t focus on the hedgehog concept, so many companies using EOS have goals and strategies based on bravado rather than understanding what will enable them to be great.

Knowing your hedgehog concept will keep the organization focused on something that aligns its passion with what it can be the best at. Being good at something means you are good but indistinguishable from many others. If you stand above the crowd if you are the best at something. Finally, the economic engine keeps the company focused on a metric that drives profit.

Vision

While the EOS Method® works to develop a ten-year goal, I find that it is not as compelling as Jim Collins’ BHAG. A BHAG, Big Hairy Audacious Goal, is a clear and persuasive statement and serves as a unifying focal point of effort with a defined finish line. It engages people, is tangible, energizing, highly focused, and often creates immense team effort. People “get it” immediately; it takes little or no explanation. 

A visionary BHAG is a 10–25-year compelling goal that stretches your company to achieve greatness. It should be a huge, daunting task, like climbing Everest or going to the moon, which at first glance, no one in the company knows how on earth you will achieve.

As Collins noted, the best BHAGs require both “building for the long term and exuding a relentless sense of urgency: What do we need to do today, with monomaniacal focus, and tomorrow, and the next day, to defy the probabilities and ultimately achieve our BHAG?”

Profit/X = Economic Engine

The BHAG’s economic engine is the concept of Profit/X. In Good to Great, Jim Collins defines this strategic metric as “One and only one ratio to systematically increase over time, what x would have the greatest and most sustainable impact on your economic engine?” Unfortunately, too many companies don’t have an economic engine, so they fail to deliver hoped-for profits. This metric is not easily identified; however, Collins noticed that the companies that took the time to discuss, debate, and agree on one key driver for their economic engine are the ones that went from good to great.

Profit/X is how you choose to make money; it is a strategic metric, not an operational one. This ratio is a key driver in your financial engine and when you decide how to spend money. When developing your Profit/X, you need to have one that is unique and not the industry average because if you choose the latter, everyone will be pricing and driving costs the same way to maximize it. Like the BHAG, a correctly defined Profit/X will promote teamwork as everyone can focus on their role to drive the metric, from how many people to hire, where to open new operations, etc.

Value Creation

“A Business That Doesn’t Create Value for Others is a Hobby.” So, what value does your organization create? Value creation is linked to what your company can excel at. However, businesses must identify the problem they aim to solve for their customers. Clayton Christensen defined this as “What is the job your customer is hiring you or your products to do?” Many organizations mistakenly define the job based on their activity rather than focusing on their customers’ needs. Identifying the job to be done can help target marketing and sales efforts toward addressing customers’ problems rather than simply promoting the company’s activities. The EOS Model® does not sufficiently address this essential question, which is critical for a company’s growth.

Core Customer

Understanding your company’s Core Customer is vital. If have found that many businesses cannot identify their Core Customer. Some of the key metrics of a Core Customer are one that pays on time, allows you to make a satisfactory profit, and refers you. Focusing on the wrong Core Customer can lead to misguided marketing and sales activities, reducing profitability and cash flow and ultimately weakening the company’s performance and growth.

Brand Promise

The EOS Model® does not address the question of Brand Promise, which is crucial for a company’s growth. Your Brand Promise is what convinces your target audience to buy from you, stands as a testament to your commitment, and serves as a measurable benchmark for your company’s performance. Some organizations have a Brand Promise, but if it’s not quantifiable, it becomes “valueless” because nobody knows if you’re delivering on it, rendering it useless to prospects and clients.

Value Delivery

Value delivery is essential for understanding how customers perceive your organization’s performance. While the EOS Model® discusses various metrics, value delivery does not receive adequate attention. Companies must determine whether their customers are satisfied with their performance. A CEO might assume that their customers are “Very Satisfied,” but they may be overlooking the reality of customer dissatisfaction and lack of recommendations without measuring it.

Critical Number and Counter Critical Number

The EOS Model® effectively deals with goals (Rocks) and meetings but fails to align Rocks with the long-term goals of the company, Rock should be tied to the quarter’s Critical Number, which drives the organization toward its long-term goals. Tying Rocks with the Critical Number maintains organizational focus. In addition, a Counter Critical Number is crucial to prevent the critical number from overwhelming the company and causing unintended consequences.

Focusing on a Critical Number and Counter Critical Number during the 13-Week Sprint is crucial for developing focus and alignment within the organization.

Team Alignment

While the EOS Model® effectively addresses having the “Right People” in the “Right Seats,” it does not consider alignment among the leadership team and employee satisfaction. Assessing the alignment of leadership and employee satisfaction is necessary to ensure everyone is working in the same direction and committed to the company’s success.

Conclusion

While I appreciate the EOS Model®, I believe it fails to address many aspects required to develop a healthy agile growth company. By incorporating additional elements from the Gravitas’ 7 Attributes of Agile Growth® model, businesses can create a more comprehensive system that promotes agile growth while maintaining smooth operations. The 7 Attributes of Agile Growth® focus on Leadership, Strategy, Execution, Customer, Profit, Systems, and Talent.

If you are interested in transitioning to an agile growth company with the help of a certified Gravitas Agile Growth coach, please feel free to reach out to me.

Copyright (c) 2021, Marc A. Borrelli

Subscribe for more
Schedule a Call

Recent Posts

5 Strategic Leadership Skills Every Manager Needs

5 Strategic Leadership Skills Every Manager Needs

by | Nov 28, 2022

So often, people view leadership as a talent: you’re either born with this quality or you’re not. However, this is not always the case! In reality, good leadership is made up of skills, and anyone can learn how to improve. Some people may pick up leadership attributes...

5 Ways to Use Email Automation to Boost Traffic

5 Ways to Use Email Automation to Boost Traffic

by | Aug 25, 2022

Every single business in the world wants to evolve and grow. This will happen using a variety of techniques and strategies. In 2022, digital marketing is more than a household name, and most companies will adopt at least a few ideas when long-term planning and coming...

Profit and Revenue are Lousy Core Values

Profit and Revenue are Lousy Core Values

by | May 1, 2022

As I mentioned last week, I am down with COVID and tired, so spending more time reading rather than working. I read Bill Browder's Freezing Order this weekend, and I highly recommend it. However, at the end of the book, Browder says that oligarchs, autocrats, and...

What has COVID done to Company Culture?

What has COVID done to Company Culture?

by

The effect of COVID on company culture is an issue for all business leaders to consider seriously. I see the following areas for examination:

  • Have you lived your culture during COVID?
  • How are you maintaining your culture and connections in a WFH world?
  • How are you instilling your culture into new hires in a WFH environment?

Have you lived your culture during COVID?

COVID has forced many companies to pivot, cut costs, and adjust strategy. However, did the leader and management team live up to the company’s culture while executing these changes? As everyone’s cultural values are different behaviors to consider.

  • Did you check in with your employees regularly to see how they were coping?
  • Did you communicate effectively and often with your employees, so they knew what was happening?
  • When making changes, did you explain why and where the company’s new direction was aimed?
  • When terminating people, did you do it in person or by email?

The above is just a sample of behaviors that maybe didn’t live up to the company’s values. If you didn’t, then you need to work hard to fix it. As with any crisis like this, there are a few key steps:

  1. Get in front of it. It has happened, so it is hard to get in front of it. However, do an audit of behaviors and values during COVID. Identify the lapses and then plan accordingly. Don’t wait for the Zoom cooler talk to destroy any belief in the companies values.
  2. Admit It. Let your employees know you recognize that you didn’t live up to your values in the identified situations.
  3. Own It. Say it was the leadership’s fault. The buck stops with you, and that is why you get paid the big bucks! Deflecting the blame will only weaken a fragile state and create further disbelief in any values you may have.
  4. Correct it. Layout a plan to correct the behaviors from happening again and what steps the organization will take to reinforce its values in the future. This plan needs to have SMART metrics tied to it so that employees can see the progress being made and it not just more “CEO Bingo.”

Maintaining your culture and connections in a WFH world?

For many, the move to WFH has gone well overall. Productivity is generally up, and work is getting done. Many CEOs and business leaders are considering to what degree they can allow WFH going forward, permanently, one to five days a week, etc. However, one of the reasons that WFH has gone so well is that before COVID, we had strong relationships with our coworkers. We knew them, had worked with them, and most importantly, had built some degree of trust. But the longer we don’t connect with them, the weaker these bonds grow. While we are connecting with them over Zoom, Teams, Slack, or email, that is not the same as in person. If we lose the culture or connections, it weakens the ability of the company to respond to other threats, and people will leave for companies where they see better relationships.

The more time we are remote, the bonds between us grow weaker. Long distant relationships have a 58% chance of success, basically a coin toss. There are stronger connections in a romantic relationship than a work one, so the chances of a “long-distance” work relationship working are less than 50%. So leaders need to figure out how to maintain the connections and culture among employees as they go forward with a WFH policy. If employees are only going to be in the office rarely, the company needs to increase how it builds connections between employees and promotes its culture.

Regular gatherings of employees at events where they can strengthen their relationships will be essential. Getting them to share personal information to build stronger bonds will also be a crucial part of the effort. Doing this will differ among companies, but figure it out and ensure that the events have a clear purpose that everyone understands and get feedback on to know if you are achieving your goals.

Instilling your culture into new hires

New hires are posing the most difficult challenges for companies. Historically we know that 70+% of people regret making the job change on the first day. Now we are in a WFH environment where there are fewer personal connections. If we cannot build those connections and get them to buy into the culture, they will shortly leave, which is expensive for the organization and poses new problems when people are hard to find.

The leader and leadership team need to work with their HR departments to figure out how to effectively onboard new hires and simultaneously install the firm’s culture and develop personal connections among the teams. Achieving this won’t be easy, but the effort will pay huge dividends.

Why Does This Matter?

It doesn’t take much to destroy the employees’ belief in the company’s values and attribute them to just words on a wall. If this is where you are, the road back to get alignment around values will be hard. Without core values, nothing connects the employees to a common bond and purpose, so they are more likely to leave.

If your employees are not connected, they are less likely to have a good friend at work. Without a good friend in an environment where they spend a third of their time, there is less keeping them attached. With demand for employees increasing, and thus wages, they will be tempted to move if there is no downside to leaving the tribe.

Those organizations that live their culture and whose employees have strong bonds of trust will outperform those that don’t. The work to achieve this is not always easy but very beneficial.

 

Copyright (c) 2021, Marc Borrell

 

Subscribe for more
Schedule a Call

Recent Posts

5 Strategic Leadership Skills Every Manager Needs

5 Strategic Leadership Skills Every Manager Needs

by | Nov 28, 2022

So often, people view leadership as a talent: you’re either born with this quality or you’re not. However, this is not always the case! In reality, good leadership is made up of skills, and anyone can learn how to improve. Some people may pick up leadership attributes...

5 Ways to Use Email Automation to Boost Traffic

5 Ways to Use Email Automation to Boost Traffic

by | Aug 25, 2022

Every single business in the world wants to evolve and grow. This will happen using a variety of techniques and strategies. In 2022, digital marketing is more than a household name, and most companies will adopt at least a few ideas when long-term planning and coming...

Profit and Revenue are Lousy Core Values

Profit and Revenue are Lousy Core Values

by | May 1, 2022

As I mentioned last week, I am down with COVID and tired, so spending more time reading rather than working. I read Bill Browder's Freezing Order this weekend, and I highly recommend it. However, at the end of the book, Browder says that oligarchs, autocrats, and...

Rethinking ‘Family’ Culture in Business: Fostering Performance and Success

Rethinking ‘Family’ Culture in Business: Fostering Performance and Success

by

How to Create a High-Performance Culture While Maintaining Family Values

Introduction: The Importance of Company Culture

I strongly believe that company culture is essential to a business’s success. It shapes your identity, attracts employees, and influences behavior. Jim Collins famously stated that the most important thing is “Who is on the Bus.” However, many clients and business owners I talk to claim they have a “Family” culture within their organizations. This response often raises a red flag for me, as it may indicate potential organizational performance issues.

Understanding the ‘Family’ Culture

What does a “Family” culture really mean? At first glance, it may seem like the organization provides a nurturing and supportive environment for its employees. However, the reality is often different, with conflicts arising and employees falling into roles similar to those in a dysfunctional family.

Typical ‘Family’ Roles in Organizations

Some common dysfunctional roles found in organizations with a “Family” culture include the matriarch/patriarch, favored child, second-class child, drunk uncle, bitter sibling, and outcast. These roles can hinder the performance and success of the organization.

Why ‘Family’ Culture Can Be Problematic

Employees often leave organizations due to losing respect for their supervisors. This loss of respect is commonly attributed to the supervisors’ tolerance of “B” and “C” performers. High-performing employees want to be surrounded by other top performers, but in a “Family” culture, poor performance is tolerated, driving away the most talented workers.

Creating a Performance-Oriented Culture

To foster a culture that values performance, organizations should avoid claiming a “Family” culture. Instead, they should focus on specific family values they want to emphasize, such as nurturing, development, or training.

Success Factors for Family Businesses

Successful family businesses often have clear rules for family members who wish to join the company. These rules may include working elsewhere before joining, applying for open positions, possessing the necessary qualifications, being interviewed and selected by non-family members, reporting to non-family members, and understanding that they can be fired for non-performance.

Conclusion: Emphasizing Performance and Values

If you want to create a high-performance culture in your organization, avoid relying on the concept of a “Family” culture. Instead, focus on the specific aspects of family values you want to emphasize and incorporate them into your company culture.

Copyright (c) 2021, Marc A Borrelli

 

Subscribe for more
Schedule a Call

Recent Posts

5 Strategic Leadership Skills Every Manager Needs

5 Strategic Leadership Skills Every Manager Needs

by | Nov 28, 2022

So often, people view leadership as a talent: you’re either born with this quality or you’re not. However, this is not always the case! In reality, good leadership is made up of skills, and anyone can learn how to improve. Some people may pick up leadership attributes...

5 Ways to Use Email Automation to Boost Traffic

5 Ways to Use Email Automation to Boost Traffic

by | Aug 25, 2022

Every single business in the world wants to evolve and grow. This will happen using a variety of techniques and strategies. In 2022, digital marketing is more than a household name, and most companies will adopt at least a few ideas when long-term planning and coming...

Profit and Revenue are Lousy Core Values

Profit and Revenue are Lousy Core Values

by | May 1, 2022

As I mentioned last week, I am down with COVID and tired, so spending more time reading rather than working. I read Bill Browder's Freezing Order this weekend, and I highly recommend it. However, at the end of the book, Browder says that oligarchs, autocrats, and...