What has COVID done to Company Culture?

What has COVID done to Company Culture?

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

 

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Are you ready for the Talent Crunch?

Companies are looking to hire! According to Vistage research, “The most notable finding from the December survey is that more than two thirds (67%) of small businesses reported plans to increase their workforce in the year ahead, up significantly from 55% in November. These expansion plans among small businesses are the highest since February of 2018.”

At the moment, from what I hear, finding the “right” people is hard. That is because of COVID. People will not:

  • Leave current employment. With COVID, employees are staying put for the moment as the risk of moving is too significant. Everyone is aware of a “last in, first out” bias, so no one is ready to take the risk until things improve.
  • Move. With COVID, employees are unlikely to take jobs in new cities. That is not to say people aren’t moving; they are, but usually back to where they came from, with support systems there. Baby boomers are moving to some excellent early retirement locations. However, average employees are unlikely to move for a job as there is too much risk involved in incurring up and moving expenses when the job is uncertain, and they may have no support structure.
  • Take large risks. There is enough risk right now from COVID, and the economic uncertainty that most people will not take on more for a situation that they feel is very risky.

Current expectations are that we may hit COVID herd immunity in July, with the recovery starting in May or June. If that is the case, businesses will benefit from the pent-up demand that COVID has caused. Thus, we can expect employees to adjust their risk profile and start job hunting and moving just as companies increase their employment demands from Q2 onwards.

What are the employees looking for?

Purpose. For many, COVID has brought home their mortality and causing them to ask if what they do matters. Thus, if the company has no core purpose or “Why?”, or the core purpose doesn’t align with the employees’ purpose, the employees will move to those companies where the core purpose aligns.

Empathy. Many people will feel that their employers/bosses didn’t treat them well during COVID or showed insufficient compassion. They may have had to work through challenging homeschooling or ill parents/spouse with their employer making little allowance.

Living Core Values. Many companies have claimed to have Core Values, but when they are just words on a wall. During COVID, many organizations’ behavior has shown employees that their Core Values are just words and not beliefs, and not living your core values will drive employees and prospects away.

Opportunity. Since we are all mortal and life is fleeting, not only do employees want to work where they believe in what they are doing, but they want to realize their potential. Employers that show no interest in an employee’s career development and personal requirements will find those employees departing.

Character. As a result, employees will look for those companies who have always stated their Core Purpose and Values rather than those who have suddenly “found religion” and hoping that their new statements will make a difference like a fresh coat of paint.

McKinsey research showed that of employees:

  • 82% believed it was important for the company to have a purpose;
  • 72% thought that purpose should have more weight than profit;
  • 62% believed that the company should have a purpose statement; and
  • 42% said that their organizations’ purpose statements drove impact.

So, where does your organization fall? If you don’t have a purpose statement that is driving impact, how will you fare in the looming talent crisis? As I have often said, “How you behave during this crisis will define you for a decade or more.”

Here are some questions to ponder.

  • Do you have a clear purpose?
  • Can you say in one sentence what your organization is passionate about?
  • Why does the organization exist?
  • What are your Core Values, and can you point to those that live them and where they are part of your folklore?

If you can’t answer these, then the Talent Crunch is going to hurt! People will leave for places where they feel their purposes align and people live with similar Core Values. As the economy recovers and demand picks up, most companies will need more people to meet the challenges. If you don’t have enough and cannot hire the type you need, you will be in trouble.

If you don’t have a Core Purpose or Core Values, then you are attracting three basic types of employees:

  1. Walking dead. Can’t get a job anywhere else
  2. In Transition. They need a job, so they will work for you until something better comes along.
  3. Don’t care about a Why. These people do have a Why, but it is usually money and nothing else. At any time they feel they are not getting enough, they are gone. Real mercenaries and not good if you ever expect to hit a rough patch in the future.

If you don’t understand your Why, Simon Senik’s video below will put it better than I ever could.

Remember, a Core Purpose is a deep reflection on your corporate identity—what you really stand for—which may well lead to material changes in your strategy and even your governance. If you don’t have a Core Purpose and Core Values but will start defining them now, I would offer some suggestions.

  1. Get a coach or facilitator to help. Discussions over this can easily get bogged down. Many times, everyone will look to the business owner for guidance, which may be okay. But if the business owner comes up with a bad Why, e.g., profit, will anyone challenge?

2. Don’t make profit your Why, for some of these reasons:

  • No one cares but shareholders, and generally, they are not the ones operating the business.
  • Your customers and suppliers are not impressed that “making a profit” is your Why, as that implies you will take advantage of them.
  • If profit is your why then everyone’s only interest is making money. Thus, anything that will make money is okay. When the company hits trouble, no one will stay and help; they are only there for the money.
  1. Remember Jim Collins’ statement about Core Values, “you are willing to lose money than breach your core values.” So, once you determine, make sure your leadership team and most of your employees can live them. If not, they need to go, as they are not “the right people.”

If you have an excellent Core Purpose and held Core Values, put them on your website, in your recruiting materials, and make sure you live your core values. You will be able to attract some great talent in the times ahead.

 

Copyright (c) 2021 Marc A. Borrelli

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In my Vistage meetings this week, we had an interesting discussion on whether or not my members would make their employees get a COVID vaccine. While there was a brief discussion on whether or not you could legally make your employees get vaccinated, we primarily discussed what each person would do. (Apparently, you can with two exceptions, medical conditions make it dangerous and religious objections. For more see, Can I Be Required To Get Vaccinated Against Covid-19?). The results were diverse and ranged from:

  • “No!” “I would take it myself but would not force my employees to do so because they may leave.”
  • “I have many conspiracy theorists among a section of my workforce, and they will object.”
  • “No, I don’t want to be sued.”
  • “If they want to travel, they have to.”
  • “If they want to work in the office, they have to as we have health comprised people in the office.”

However, what stood out in the discussion was that none of the CEOs framed their response within their Core Values. Again, as Jim Collins says, Core Values are so important that we would be willing to lose profit rather than breach them. Thus, if our Core Values are that important, indeed, they should frame our response to the vaccination question. If we don’t, then once more, our Core Values are only words on a wall or a pad but have no impact on the organization and behavior in it. In that case, they are worthless, and your employees lose trust in your words and statements because they are just that – words, and not beliefs.

Regardless of whether your Core Values are just words on a wall or actively known by every employee, a complex issue like vaccination stresses them and how they are understood within the organization. Those of you who read my blogs know that I have said that Core Values provide employees a framework for making decisions within an organization. However, if your Core Value is “Respect,” what does that mean, especially in the COVID vaccine world? Does it mean:

  • Out of RESPECT for our fellow workers, we will all vaccinate.
  • Out of RESPECT for you, your opinion, and your decision making, we will allow you to do what you think is best.
  • Out of RESPECT for you, we will enable you to determine what you put in your body.
  • Out of RESPECT for our clients, we will vaccinate those that are client-facing.
  • Out of RESPECT for our employees’ health and decision making, we will allow those that don’t want to be vaccinated to work from home so they can’t infect anyone in the office.
  • Out of RESPECT for our fellow citizens, we will all vaccinate to get to herd immunity quicker.
  • Out of RESPECT for your health-compromised family, we will allow you to work from home until it is safe to return to the office, whether that be one month or five years.

As you can see, a single word like RESPECT can have many different interpretations, and this is where things get complicated. For example, if you determine that your version of RESPECT is the second one, “Out of RESPECT for you, your opinion, and your decision making, we will allow you to do what you think is best.” You apply that to COVID, then surely it applies to all decisions they make within the organization. While we all like to push decision-making down, the leadership team has to be able to override decisions and impose its desires in certain instances. So what are those situations, and where is the line?

Core Values are more than just words or statements. They have meaning, and the organization can only succeed if the intention is understood equally by everyone in the organization. To see how you are doing, ask your employees if they know what the organization’s Core Values are, and how they should be understood. Your employees may often find it hard to define them, so offer them situations and ask, “what should someone in the organization do?”

Here you might find a great deal of diversity of opinion. To overcome this and teach your Core Values, I think the best way is to rely on corporate folklore. Your company needs stories of the founder, the CEOs, the great people in its history, and how they behaved in situations that reflect the company’s Core Values. Having corporate folklore and ensuring that employees learn the stories and their meaning as part of the onboarding process will create greater belief in, and understanding of, your Core Values. Furthermore, make sure to repeat the folklore stories whenever a situation arises where they are relevant. Repeating them drives home learning until everyone knows your Core Values and how they should be interpreted.

Returning to the COVID vaccinations decision. Well, regardless of your Core Values, the decision of whether or not to require employees to be vaccinated will be hard. However, I would recommend that, first of all, you be a leader in your decision and state it with leadership in mind. If you want them vaccinated, be at the front of the line. Second, figure out how your decision fits with your Core Values and explain that way. Of course, it has to work; if it is a stretch or plain contradictory, then maybe you need to re-examine your Core Values.

Good luck, and may you stay safe in the meantime.

 

Copyright (c) 2020, Marc A. Borrelli

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As we have all struggled through 2020 and the difficulties of lockdowns and WFH, our core values are guiding decision making and holding us together as organizations. Talking to a senior executive recently, he said that COVID had destroyed his organization’s comradery, and no one felt connected. However, on further investigation, it appeared that the company has no core values, as they thought them irrelevant.

I find companies without clearly articulated core values can rarely define, “Why do you exist?” If you have no core values, no guiding mission, and everyone is now working from home, what bonds the team together? The only thing is the paycheck. However, we know that money is a terrible motivator. Scholars at the London School of Economics looked at 51 studies on pay-for-performance schemes and concluded:

“We find that financial incentives may indeed reduce intrinsic motivation and diminish ethical or other reasons for complying with workplace social norms such as fairness. As a consequence, the provision of incentives can result in a negative impact on overall performance.”

So, core values are fundamental. I hope you have some, and they are clearly articulated in your organization. Remember, as Jim Collins says, core values are those things we would rather lose profit over than breach. If you are undermining them, your team loses commitment to the values, and it becomes a Lord of the Flies environment with finger-pointing, denouncements, and everyone for themselves.

However, even if you do have core values, there may be three ways you are undermining them.

You Breach Them

The first possibility: you breach your core values! If one of your core values is, “We treat everyone with respect” (which I often see in companies) and you do something disrespectful to an employee, customer, or just someone outside the organization, it causes issues. The perception among your employees is that:

  • The CEO lacks personal commitment to the core values;
  • The CEO is a hypocrite; and
  • All corporate statements around behavior, mission, and values are only words and not taken seriously.

Therefore, you and your leadership team must live your core values at all times. If one of you cannot, then either they have to leave the organization, or you have to change your core values. Pat Lencioni talks of a company where once they had defined their core values, one of the leadership team resigned, saying, “I cannot live that value, and if that is the value of the organization, then I should go.” It can be hard to enforce them, but it is better for the organization in the long term.

You Allow Others to Breach Them

As mentioned above, the CEO and leadership team must live the company’s core values. However, if you allow others within the organization to breach them, it leads to the issues described above. I have often seen that the leadership team provides a pass for some employees because they are high performers, e.g., top salesperson or IT person. The rationale is that we cannot survive without them, and so we will tolerate their failing to behave because it is more important to keep them than maintain our core values. However, as Jim Collins points out, you should be prepared to take a loss to live up to them, so you should be prepared to lose these employees to keep your core values.

I often have CEOs and leadership teams struggle with what to do about such “toxic” people, and at the end of the day, after much pushing, they let that individual go. What usually happens is that company morale improves, core values become believed in, and productivity increase above the levels that were there when the toxic person roamed the organization.

Your Employees Are Confused as To What They Mean

Of the three reasons, this is probably the most common, because it is the easiest to do. I have said the worst two inventions for the corporate world were Excel and PowerPoint. The former encourages accuracy without precision, and the latter because we have lots of presentations where everyone has their interpretation of what the meaning was. This lack of definition is pervasive with core value statements.

You need to explain the meaning of core values. Reinforce them by recognizing examples of the team’s correct behavior, and explaining why specific actions are not core values even if they appear to fall within the definition. If you don’t, employees will weave their interpretations and ideologies into them. The employees’ ideologies and interpretations may take the core values further or in a different direction than the CEO intended. However, once the employees have taken them there, the CEO and leadership team’s opportunity to breach them increases dramatically.

If a core value is “employee growth and belonging,” without being clear as to what this means, it may be interpreted as:

  • Employee empowerment to do more than they should.
  • A family environment where the growth is limited to ensure that family feeling
  • Communication is equal, and everyone has a voice at all levels.

If that is not what the CEO intends, but it is what the employees now believe, it becomes only a matter of time before the CEO crosses the line and breaches the core values in the employees’ minds.

The problem that most often happens is that the employees don’t consider if their interpretation of the core values was wrong; instead, they assume that the CEO is a hypocrite and doesn’t care about the core values. Employees are unlikely to raise the issue that they think the CEO and leadership team have breached the company’s core values because the values of “Open Door” and “Bring me the bad news” are now just considered words rather than values. Thus, the negative spiral starts.

To prevent this, leaders must spend time asking employees what they are thinking and feeling, as well as sharing their own thoughts so that the employees will feel comfortable expressing their concerns.

To ensure that the understanding is correct, the leadership team needs to reinforce examples of behavior that supports their definition of the core values. When they see actions that don’t mean the intent, call them out and explain why it doesn’t fit the core values. Also, recognizing individuals’ living core values within the organization reinforces the organization’s commitment to the core values. Finally, the CEO and leadership team need to be aware of when they breach the values, admit their failures, and commit to living to those standards in the future.

I hope as we end the year, you CEOs and business leaders will take time to recognize those in your organization that has lived your corporate values during the struggles of 2020 in your one-on-one meetings. It will provide a great deal of goodwill and encourage the behavior far more than the usual “Rally around the flag” speech at the end of the year.

 

Copyright (c) 2020 Marc A Borrelli

 

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The Greatest Own Goal or the Greatest Collapse

The Greatest Own Goal or the Greatest Collapse

The European Super League collapsed within days of launch due to hubris and the founder forgetting the key parts of their business model, value creation, sales, and value delivery. The collapse might bring a high price.

Tony Hsieh, a Corporate Culture Icon, RIP

Tony Hsieh, a Corporate Culture Icon, RIP

Last week, we lost a great visionary when Tony Hsieh died from complications from burns and smoke inhalation sustained in a house fire that had occurred nine days earlier, on November 18. Among other things, Hsieh showed how that culture is the most important thing in an organization. He believed that by investing resources in its cultural commitment to customer service, the delighted customers then do the valuable word-of-mouth marketing.

For those that don’t know his background, Hsieh co-founded the Internet advertising network LinkExchange, which he sold to Microsoft in 1998 for $265 million. He then co-founded Venture Frogs, an incubator and investment firm, with his business partner, Alfred Lin. In 1999 following an approach from Nick Swinmurn to invest in Zappos, Hsieh and Lin decided to invest through Venture Frogs. Two months later, Hsieh joined Zappos as the CEO, and by 2009, revenues reached $1 billion, when it was sold to Amazon.

Hsieh stepped down as CEO until August of 2020, but his legacy at Zappos lives on. Hsieh learned how to make customers feel comfortable and secure with shopping online by offering free shipping and free returns. Hsieh’s belief in employees and their ability to self-organize let him rethink Zappos’ structure, and in 2013 it became for a time a holacracy without job titles. Of all the applicants that applied, the company hired only about 1%. Zappos was often listed in Fortune as one of the best companies to work for. Beyond lucrative salaries and being an inviting place to work; it delivered extraordinary customer service.

Hsieh made Zappos fanatical about great customer service. The company was not just about satisfying customers but amazing them. It always sought to over-deliver on its promises.

Also, to ensure great customer service, Zappos mastered the art of telephone service. Telephone services are a black hole for most Internet retailers. For Zappos, they made it key. The company publishes its 1-800 number on every single page of the site. All employees are free to do whatever it takes to make you happy, a step up from the Ritz Carlton where anyone could spend $1,000 to make a customer happy. The call center has no scripts, no time limits on calls, which means no robotic behavior! Zappos employees had an amazing emotional connection to the company through its culture and core values, which then infected their customers. As Richard Branson has said, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of your customers.” Thus, Zappos is a company that’s bursting with personality.

According to Hsieh, if you get the culture right, the rest will take of itself. Besides, Hsieh believed that a company’s brand is just a reflection of the culture. You can see how this value was applied in Zappos’ hiring process.

 

The Interviews

There are two sets of interviews. The first set is done by the hiring manager looking for the appropriate skills and ability to fit with the team. The second is done by HR and is only looking at culture fit. You have to pass both to be hired at Zappos.com because they will only hire people who fit with its culture. Also, regardless of performance, they will fire someone who doesn’t fit with its culture.

 

The Training

All Zappos’ employees, when joining the company, spent the first four weeks going the same training regardless of whether they were a call center rep or a software engineer. The employees receive full pay during training, and this training immerses them in the company’s strategy, culture, and obsession with customers. The training starts with Call Center Training. The next two weeks, they all spent time on the phone taking customer calls because if the brand is all about providing the greatest customer service, then customer service is not a department but the entire company. A side benefit of this approach is that when the busy time of the year occurs, all employees can help in the call center because they have all done it, reducing the need for temporary workers to help. Finally, the last week is at one of their warehouses, picking and packing.

 

The Offer

At the end of the first week of training, all the new employees are offered a bonus of $2,000 to quit and leave the company right then. This is a standing offer that remains throughout the training period. After the training period ends, the offer is raised to $3,000 and extended for a few more months.

As a Harvard Business Review article put it, “Because if you’re willing to take the company up on The Offer, you obviously don’t have the sense of commitment they are looking for.”

The rationale behind the offer was that Zappos.com didn’t want anyone who was there for the paycheck; they wanted people who bought into the company’s culture and vision. Furthermore, those who didn’t take the offer had to go home and tell their family and friends that they had turned down the offer because they believed in its culture and wanted to be a part of such an organization. Zappos.com found that those employees were more committed to the organization when they turned down the offer.

When Zappos started the offer, it was only $100, but the company has increased yearly because they feel not enough people take the offer. According to Hsieh, about 2-3% of employees took the offer. Amazon was so impressed by “The Offer” they have instituted a version of it.

 

Performance Reviews

All employee performance reviews focus on job performance, and are you living and inspiring the Zappos.com culture. If not, you will not remain at the firm. Culture is essential.

 

The Culture Book

Once a year, all employees are asked to write a few paragraphs about what the Zappos.com culture means to them, and these are put in the Zappos.com Culture Book. Their submissions are only edited for typos, but otherwise, everything left as written, the good and the bad. It is organized by department so you can see how culture may differ within departments. Here is a link to one of their culture books.

Some examples of how Zappos employees define their culture.

  • Happiness. Great culture leads to employee happiness. The same way a toxic culture leads to unhappiness. Happy employees mean higher engagement, profitability, and low turnover.
  • People. Our culture would not be what it is today without the people, past and present. We are all protectors and cultivators of the Zappos Culture; it’s what makes it unique and something that changes every day.
  • Being Yourself. I love that I get to be me all day. The culture encourages you to be the same person you are at work as you are at home. I don’t have to pretend to be something I’m not, which makes Zappos a comfortable place to be.
  • Unique. Every company has a unique culture that’s all their own. Just like every person has their own personality, every company has its own culture. Building a culture is a special process that can’t be taken lightly. It’s the responsibility of every employee to represent and foster culture.
  • Fun. Work can be fun! We have 2 annual parties at Zappos. Our Vendor Party where we invite all of our brands to thank them and celebrate our partnership. And our employee holiday party. Past epic party themes have ranged from Mardi Gras and old-school hip-hop to a Hawaiian luau at a waterpark. Each has had its own twists and tricks to surprise and delight partygoers. This year, we invited our vendors to run away with us to the “Untamed Circus.”
  • Perpetual. Your culture doesn’t stay the same; it will continue to evolve. Having a defined set of values will serve as your guide to continue your culture’s growth and evolution in a positive direction.
  • Not Always Measured. A strong culture means lower employee burnout and, therefore, lower turnover. It leads to higher employee engagement and higher profitability. But really, companies should focus on their culture because it matters. Because it’s just the right thing to do. To quote Tony Hsieh, “Just because you can’t measure the ROI of something doesn’t mean you shouldn’t do it. What’s the ROI on hugging your mom?”
  • Work-Life Integration. Companies and employees worry about work-life separation or work-life balance. But why? Wouldn’t you rather be a company where your employees easily combine their full self into everything they do? Wouldn’t you rather work for a company whose focus on culture allows your job to integrate with your life? It shouldn’t be a struggle to find a balance between life and work where you are truly fulfilled and happy.
  • Partnerships. Your vendors have the same objective as you: to sell their product, be successful in their work, and maybe have some fun while doing it. Something unique that Zappos does is allow brand representatives access to all the same sales and inventory information on their products that Zappos has. By working as a team, by partnering, you are setting the stage for success!
  • Real. Your company has a culture. You may not have “planned” it. You may not like it. Or maybe you love it. But it’s there. It is real. You can choose to be thoughtful about your company culture. You can set values and identify the behaviors that you want to be the core of your culture. That part is fairly easy. The hard part is committing to the values once they are set. Living them.
  • Core Values. Values are more than just words; they’re a way of life. They are the foundation of your company culture. We know that companies with a strong culture and a higher purpose perform better in the long run. As we continue to grow, we strive to ensure that our culture remains alive and well.
  • Your Brand. A company’s culture and a company’s brand are really just two sides of the same coin. The brand is just a lagging indicator of the culture.

 

Twitter

The company is very active on Twitter. They introduce employees to Twitter during the training, and at the end of the training, it is up to the employees if they wish to remain engaged on Twitter. Zappos has a Twitter page that aggregates all the employee tweets together, enabling employees to learn about their fellow employees who they may not have met and build better relationships. As a result, many of its employees are power users of Twitter so that their friends, colleagues, and customers know what they’re up to at any moment in time.

 

Core Values

Zappos didn’t initially have core values because they felt they had to “real” to the organization and not just some words on a wall developed by a public relations firm. Hsieh and his team emailed all the employees asking what they thought the company’s core values should be and then spent a year going through the responses to come up with Zappos core values. Zappos has 10 core values are they are:

  1. Deliver WOW through Service
  2. Embrace and Drive Change
  3. Create Fun and a Little Weirdness
  4. Be Adventurous, Creative, and Open-Minded
  5. Pursue Growth and Learning
  6. Build Open and Honest Relationships with Communication
  7. Build a Positive Team and Family Spirit
  8. Do More with Less
  9. Be Passionate and Determined
  10. Be Humble.

Today, according to Hsieh, if you Google search any one of these core values by themselves, Zappos is among the in first results. The company has interview questions for each one of these core values.

Other interview questions:
#3 Create Fun and a Little Weirdness. On a scale of 1 to 10, How are Weird are you? With 1 being not weird and 10 being very weird? If you are 1 – 2, you may not be too weird. If a 10, maybe too weird. The answer is not the issue, but everyone is different, and what Zappos is looking for work-life integration so that the person is the same at the office as at home. If they can be who they are at all times, then creativity comes out, and true friendships are made.

#4 Be Adventurous, Creative, and Open-Minded. On a scale of 1 to 10 how lucky are you in life? 1 is “I don’t know bad things always happen to me,” and 10 is “I don’t know why good things always happen to me.” Zappos doesn’t want the 1, not because they are unlucky, but that luck is about being open to opportunities so looking for people who are open beyond just the task.

#6 Build Open and Honest Relationships with Communication. Zappos is about Transparency and its beliefs are, “Be real and you have nothing to fear. Your culture is your brand. Don’t try to be someone you are not.” Zappos when they have reports come by, they allow them to go around and talk to anyone because they are comfortable with that. This is because every employee is living the brand, have the same cultural views as the company, and they are authentic

#10 Be Humble. This value causes the most problems in the hiring process because many smart people are egotistical and if you accommodate them, you lose the corporate culture. To look for humility, Zappos had would question the shuttle driver who picked up the applicant up from the airport and drove them around to see how they were treated. If the candidate did not treat the shuttle driver well, they were not offered an offer regardless of how the other interviews went.

Tony Hsieh’s legacy will live on, but I challenge those among you to consider how your corporate culture stands up to Zappos and do you really live it. If not, why not? It could revolutionize your business.

 

(c) Copyright 2020, Marc A Borrelli

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