Winter just kicked in at our home. Reality bites. Fortunately, this was the most pleasant Autumn I can remember since moving to the Atlanta Metro Area.  The evenings were ideal for after-dinner cigars and cocktails on the deck.  I took full advantage of this opportunity. My usual guest on these occasions is John, an Alumni Buddy and cigar aficionado.  My wife often joins us, although I have not been able to interest her in a cigar.   The discussion usually begins with an update from John regarding his recent job challenges.  I mostly listen and ask clarifying questions while enjoying my cigar.  When he has completed his recap, he expects to hear my thoughts.

My friend’s employer is transitioning from a small company to a professionally managed retail corporation. His updates are disappointing, as the same problems persist without resolution.  In other words, the bureaucracy at the corporate office is in control.  John often complains about additional responsibilities heaped upon store-level management by senior staff.  Rather than breaking down barriers that inhibit customer service and store-level productivity, more tasks are assigned to personnel.   The irony is that this company has sufficient data-processing capabilities to recover and analyze whatever information it requires.  Simple programming at the corporate office can achieve the required results. There is no need to burden the stores with any additional reports.  John never talks about the brand’s mission, values, or culture.   Based on what he has said, his company has not defined its core values and cultural imperatives. I am further confused by the lack of field-level merchandising, training, and recruiting support.  It does not seem to be a priority for the company.

I am reminded of the advice my new boss gave me early in my career.  I was recently promoted to a multi-unit, General Management role for a prominent mall retailer. I was being briefed on the strengths and weaknesses of my new management team.  He was sharing his thoughts on personnel decisions that I was likely to make.  He gave me clear directions on the personnel changes I should make. He said, “It’s either us or them.” That did not sit well with me.  Instinctively, I knew that my success depended on my team’s success. I recognized that our total success was about leadership and development, bringing everyone along together.  However, that wasn’t the gist of his message.  He was an Old School, a top-down manager.  He was clear about achieving compliance, not about improving productivity.    He did not focus on personnel development, teamwork, or leadership.  His message reflected the prevailing management style at many companies.  That was about to change.

At that time, managing culture was not on the radar screen for most companies.  They were focused on hiring the best talent possible from the horde of Baby Boomers entering the workforce.  Brands were organized into silos with little attention given to internal communication or integration.  It seemed like the Finance and Accounting Departments were in control.

By the mid-1980s, things began to change.  Portfolio Management Theory, which espoused organizing public companies into conglomerates, was discredited.  Tom Peters’ book “In Search of Excellence” proclaimed the virtues of focusing on what you do best.  The message spoke to specialization.  Silo’s began to crumble.  Matrix Management came into vogue.  Leadership and culture management started to gain traction.

My favorite employer worked to create a culture that was driven from the bottom up. In other words, the mission of senior leadership was to make job functions more efficient. An intense focus on helping team members better serve their customers improved the company’s profitability.  Innovation was encouraged throughout the organization. Team members were given tools and training to test promising ideas with proper oversight. Store tours focused on fact-finding to identify and eliminate barriers to excellent customer service and to support store personnel’s success.   Unnecessary and counterproductive activities were rooted out and eliminated.  This company recognized that corporate success depended on empowering employees who interfaced directly with customers.  They were ahead of the curve, proven by their results.

Other employers focused little on defining their company’s ideal culture.  As a result, there was no active management of their cultures. Not surprisingly, the weakest cultures tended to reward wrong behavior. Often, politicians were promoted over the actual performers.  Some cultures supported hypercompetitive, intra-personal competition over collaboration and teamwork.  These cultures could not be sustained in the long run.

Conclusion

Today, savvy leaders compete to attract and retain the best talent by fostering a culture that empowers customer service. They avoid piling on unnecessary tasks and seek other ways to capture information as needed. These employers understand that a healthy culture is more important than ever for attracting and retaining great employees.  It’s about them!

I appreciate your interest in ITB Partners.  For further information about ITB Partners and its Value-Added Strategy, please visit our website at www.itbpartners.com, or contact Jim Weber.

 

Jim Weber – Managing Partner,  ITB Partners

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Jim.Weber@itbpartners.com