A book came out a little while ago titled How, by Dov Seidman. While I haven't made much headway into it, I bought it because I was intrigued by its premise, which "is in the twenty-first century, it isn't what you do that matters most; it's how you do it."
He makes the case that "If you make something new (or just better, faster and cheaper), the competition quickly comes up with a way to make it still better and deliver it at the same or an even lower price. Customers instantly compare price, features, quality and service, effectively rendering almost every what a commodity." This is all so true.
The point he is making is that in our ongoing quest for differentiation, "In a commoditized world, we are running out of areas in which to do so." He says "The one place we have not yet analyzed, quantified, systematized, or commoditized, one which, in fact, cannot be commoditized or copied: The realm of human behavior – how we do what we do." In fact, he calls upon companies "to out-behave the competition."
Skimming through the book, I noticed that he places a great deal of emphasis on the role and value of culture, in creating the "how" factor that companies need to "out-behave the competition," thereby creating a more relevant differentiation for the company.
Naturally, when I hear behavior and culture, I think of Anthropology, which Webster informs us is "The scientific study of the origin, the behavior, and the physical, social, and cultural development of human beings."
Historically, when we talk about growth strategies for IT services companies, we talk about the hard stuff; M&A, new geographies, new channels, new products and services, things we can more easily get our brains around. I began to wonder how much of an effort executives place in cultivating a culture that drives the right behavior that ignites growth.
I started this inquiry among some of us at Revenue Rocket by asking, "Of all the companies you have worked for, what was it about the company that allowed you to do your best work, where you made your greatest contribution, the work of which you are most proud?" I started it off:
Mike: "An unwavering commitment to be the best, with a clear mandate of where we need to go, lots of room to work, supportive and mentoring comrades, and staying out of the way."
Dave: "Everybody working on the same page toward a common goal, with no ambiguity as to what has to be done, and being empowered to get it done."
Jay: "A clearly-defined expectation set, being surrounded by great people, having the tools and processes that allow you to do what is right, without a burdensome bureaucracy weighing you down."
Joe: "An infectious, almost reverential belief that the work we do for clients cannot, must not, will not be like any work any of our competitors can do and will do. Everything we do will be better, more innovative and more impactful."
Ryan: "Being left alone, with the creative freedom and empowerment to explore new ways of doing things, without being micro-managed."
Jo-Elle: "Having a first-class mentor who allowed us to make mistakes, who invited our participation in business decisions, and who kept us informed of all things all the time."
What's interesting about these top-of-mind, visceral reactions is notably absent was anything to do with money, titles, power, perks, prestige, turf, etc. There was an overarching sense of a corporate destiny beyond revenue or profitability, or size. There was a rock-solid belief that with a well-defined goal, the right tools, a nourishing comradeship and empowerment, anything can happen.
What everybody was describing, in their own way, as the most powerful instrument for being the best they could be, was a culture that empowered them to behave in ways that drove excellence.
Every company has a culture, some good, some not so good, some carefully cultivated, some simply left to evolve on their own. In order to get a sense of how IT services companies view corporate culture we interviewed three successful IT services CEO's to see what role culture plays in their companies. They are:
- Randy Schilling, Founder and CEO of Quilogy
- Brad Lindemann, Founder and CEO of Ambassador Solutions
- Michael Lacey, CEO of Digineer
We'd be interested in hearing from others about how their corporate culture is advancing their cause or hindering their development. You can reach me at 952-835-2333 or send an email.
Mike Harvath |