How A Growth Mindset Is Powering Microsoft’s Culture Evolution

 

On the 4th of February 2014 Satya Nadella became the 3rd CEO of Microsoft, one of the first global technology titans. Many questioned the wisdom of promoting a Microsoft insider, particularly when the organization appeared to have lost its way in terms of innovation. And its stock performance had been sluggish. Four years later those naysayers have been proved spectacularly wrong. Microsoft stock has rebounded, customer feedback never more positive and, for an organization once renowned for its hyper-competitiveness, Microsoft’s culture – not just its technology – is being touted as the game-changer. I had the opportunity to sit down with Microsoft Canada’s Head of HR Cherise Mendoza to talk about Microsoft’s Culture resurgence and how a new perspective and approach to teamwork and leadership is powering Microsoft today.

HB: Microsoft is at the epicentre of many of the most crucial business discussions happening today. In particular, that of Digital Transformation. You’re also going through a Digital Transformation of your own as an organization too. How does Microsoft think of Digital Transformation?

CM: It’s true. Digital Transformation certainly is one of the top priorities for any executive today. For us, we see it as the enabler of the 4th Industrial Revolution society is experiencing today. It is how businesses create new business models, create unique competitive advantage and, as we’re seeing in numerous categories, disrupt or evolve markets. More specifically we look at Digital Transformation as resting on 4 pillars – How can Digital enhance the experience for our customers and for the customers they’re trying to attract? How does Digital empower employees to contribute and engage inside their organizations in new ways? How can Digital deliver more operational optimization? And, not surprisingly in a “disruptive” era, how does Digital unlock or unleash new products or business models?

Those pillars sit at the very heart of what, we believe, organizations are seeking from Digital Transformation. And those objectives are one’s that Microsoft is actively seeking too.

HB: Technology organizations have traditionally been driven by a focus on the technology, the classic “speeds and feeds” conversation. Are your Four Pillars changing the conversation you’re having internally and with your customers?

CM: Absolutely. You’re right that we, like many other technology organizations, did previously look at features and functions as the tip of the spear. That view is too narrow for today’s business environment. Today it is about taking a people centric approach that looks at the entire system to business rather than a technology-first one. How does technology fit into an organization? How do people relate to technology – like Millennials versus Boomers – and how will they use the technology? What are the organizational behaviours that we need to consider?

These are richer and more rewarding conversations to have with customers because they’re about solving for the business and for the use case, not just pushing a particular solution.

HB: That change in approach must have an impact on the talent you seek to find and retain at Microsoft? Historically I imagine you looked for talent based on an ability to write elegant code, but this requires more than those technical skills doesn’t it?

CM: Yes, historically we would’ve looked for those able to write elegant code but we’re looking for different skills today.

Our CEO Satya Nadella has been very explicit that Microsoft needs to be an organization that can democratize technology for everyone.

That requires the technology to be simple and easy to use, to be open and accessible to everyone and to be applied to help businesses connect dots faster or inform new and different decisions. We’ll always need the best and the brightest technical skills here but now we’ve got a broader talent requirement to build these solutions. Equally important to skillset is attitude and mindset. We are looking for “everyday learners” who have a curiosity and an openness to think about things in new and different ways.

HB: Inherently you’re talking about Diversity, aren’t you? That is certainly a burgeoning conversation for those organization’s tackling the Future of Work and what the workplace of the future looks like.

CM: Diversity has certainly become a popular phrase in the culture discussion. We believe that it is more than just a cultural tenet, it drives everything we do. We can’t build products and solutions if we don’t have teams and people who reflect our customers and their customers too. Look at how multi-cultural Toronto and Canada are for example. If our teams don’t understand how those richly diverse groups think, make decisions, interact with each other etc, how can we ever build solutions that help them?

But, as you talk about how work is evolving, I’m equally delighted that conversations like where you work and how you work is moving towards what impact are you having at work and how the organization can help you make the most impact.

HB: That is certainly a more mature or enlightened perspective. But that doesn’t just happen organically. That requires a reorientation of leadership and the system-wide thinking you referenced earlier. Talk to me about how Satya Nadella’s leadership has helped this happen.

CM: Satya is certainly a different type of leader than the two CEO’s that preceded him here at Microsoft. And, while he may have a distinctly different style to Steve Ballmer, who I respect immensely, all of our Microsoft leaders have been authentic to themselves and authentic to how they saw the organization growing.

In Satya’s case that authenticity comes from a profound belief in having a growth mindset and a belief that a growth mindset across the organization is the path to Microsoft’s success.

At its heart having a growth mindset is a profoundly different orientation to problems and problem solving. It looks at failure as learning, not as something to punish or to shy away from. That feedback is never personal but should be given, and received, as an opportunity to grow and get better. It’s a very powerful way to drive development and growth but it does require the ability to have, and embrace, different conversations and attitudes within the organization.

Embedding that growth mindset hasn’t meant ignoring some of the brilliant legacy that Microsoft has too. We’ve always been an organization with bold ambitions. Bill Gate’s famous “computer on every desktop” was astounding for the time in which he said it. When Satya took over he saw the opportunity to set his own bold mission which is “to empower every person and every organization on the planet to achieve more” That’s an amazing mission for us because it is as bold as any other in our history but it is also one that our people can readily say “yes, I want to be part of that”

HB: That is a phenomenally evocative mission. How, as many organizations struggle to do, are you actually making that mission a driving part of the Culture here?

CM: Deliberately and purposefully and with patience is my simple answer but it’s obviously more than that. As you know, culture change or culture evolution as we prefer to think of it, is a journey. A journey that requires constant and relentless commitment. Not surprising that requires Satya, and our other leaders, to keep reinforcing it again and again in their actions and in their communications. Being a technology company gives us certain advantages in sharing knowledge and content and having more tools at our disposal but that relentless commitment is critical. And, over time, we’ve started to see this starting to breathe and take off inside the organization.

The other part is to keep it authentic which is something Satya has been phenomenal at. He’s remained consistent to his belief that this growth mindset is critical for Microsoft and that it is very powerful. Particularly because he’s been equally prepared to say that if you’re not of a growth mindset orientation then perhaps Microsoft isn’t the place for you. Being that explicit about what’s required at Microsoft today is equal parts bold and authentic.

Ultimately that has driven tremendous clarity throughout the organization.

For one thing it has reduced the type of internal competitiveness that used to be our hallmark. That is no longer seen as the way we’ll progress the company.

Its brought clarity to our strategy which, as Satya so eloquently states it, is about finding out how we make things magical for our customers and our people.

HB: Clarity is another theme that many Culture leaders speak of. How has this clarity manifest itself in the evolving Microsoft culture and the cultural practices here?

CM:. Perhaps the biggest evolution is in the way we’re looking at the behaviours of our people and adjusting how we define what’s important. Where reviewing people on a curve was how we may have done it historically, we now assess impact based on the following criteria:

Their individual accomplishments relative to their team, their business and for their customers

Contribution to other’s success – willingness and ability to share their learnings for others to benefit from

Ability to learn from others – essentially how they internalize learnings from others to drive better and more collaborative results

Additionally, we redefined our definition of leadership across three what we call “Leadership Principles and have invited not just leaders by title to participate but everyone to essentially “lead” in their own capacity. One, not surprising is around clarity. That means having clarity of objectives and clarity of expectations and importantly, ensuring clarity on the outcomes we’re looking for. Then it’s about creating energy. How do you create energy for yourself and energy within the teams and projects you are working on. We understand that everyone brings different types of energy based on their own individual style, but we wanted to make sure our employees knew that creating energy was important to Microsoft. Lastly, it’s about delivering success. That means clarity of expected outcomes we are looking for from every person here at Microsoft. Back to our mission it’s about making those objectives and outcomes bold and ambitious so our people can grow.

Having that clarity on what’s important also means I can have a more rewarding conversation within my own team but also with other leaders in the organization.

How are you bringing clarity?

How are you creating energy?

How are you delivering success?

That’s very powerful.

HB: Recognition and Rewards are powerful signals of what’s really important to an organization. Are there other tactics you’re using to reinforce this?

CM: It certainly is all about a holistic system-like approach. On a tactical level we’ve got diversity and inclusion decals on our elevators which may seem small but it is a nudge to say we’re open to chat about this topic openly. We have growth mindset memes on the coffee mugs and each week Satya has a “Mindset Moment” that he broadcasts to the entire organization. Sometimes its about something going on with a major initiative, sometimes just an observation or anecdote he wants to share. All of these efforts act as a subtle reinforcement.

But he’s been equally consistent about this being the “new normal” at Microsoft and asking employees to look deep inside themselves and decide if they’re in the boat. And, if they’re not, that’s okay but perhaps they should find a new boat. That’s not a conversation that many CEO’s are comfortable stating and standing behind, but Satya certainly is.

For me one of the interesting outcomes of this focus has actually come from a rather unusual source – our new hires. When I sit in our new hire orientation, it is not unusual to hear that Satya and the cultural evolution we’re on here at Microsoft is one of the top 3 reasons they applied to join us. That’s a fantastic recognition that our culture is becoming a magnet for talent too.

HB: How does being a technology company help or hinder you in evolving in the way you’ve described. I’ve certainly seen numerous situations where organizations think of technology, not Culture, as the answer. 

CM: I’m glad you asked that. We’re a very data driven company and we always will be. It’s in our DNA. But we’ve got remarkable tools like our Workplace Analytics tools or our Power BI that allow us to use data to see how we’re actually performing and where we need to reconsider how we’re doing things.

Case in point, we had an annual business review process that was a watershed moment for our people. Over the years it had evolved into this monster where it took teams of 30 to 40 people several days to prepare for this important meeting at our Redmond headquarters. We ran our analytics tools over that process and quickly realized we were stacking up thousands of hours of opportunity cost doing these reviews in the way we were. We quickly started implementing changes and we’re better for it. That data and analysis – essentially us eating our own dog food – is where technology can be a remarkable tool in tackling culture.

HB: An amazing answer. Thank you. I always try to end by asking what lessons you have for your HR and Culture compatriots out there facing some of the same issues?

CM: That’s tough because every culture is unique, and my challenges might differ significantly from others. Here’s what I’ve seen from my vantage point here at Microsoft.

Firstly, you need to understand your culture intimately. Understand what serves you as you’re moving forward and what you can let go. That’s critical.

Secondly, take a system-wide view to understand what and why you’re changing. Ensure you have that context before making any change.

Lastly, and I credit Satya for this one, be authentic and genuine to yourself and your culture. All cultures are unique, so you can never lose sight of that.

How TANGERINE, Canada’s Digital Bank, Uses Their Culture To Innovate And Evolve

 

It is somewhat ironic to talk Digital Transformation with Tangerine, a bank that has been digital since its inception. However, as the Executives at Canada’s Tangerine bank are quick to point out, the digital arena keeps evolving – as do the financial needs of their customers – so they need to constantly remain ahead of that curve. I had the pleasure of chatting with Chief Strategy Officer Gaurav Singh to discuss evolving Digital within a Digital organization, how the power of simplicity can be disruptive, and how the unique Tangerine Culture has made them the envy of Canada’s financial sector.

HB: Gaurav, this is a real treat, talking digital with an organization which has always been digital. For those who aren’t familiar with Tangerine, can you give us a quick history lesson?

GS: Absolutely. This year Tangerine is celebrating 21 years. Today, we serve over two million clients, have the highest Net Promoter Score in the industry, and we are consistently recognized by JD Power and Ipsos for our customer experience.

Originally, we started as a niche savings bank, and today have a suite of everyday banking products to help serve Canadians better. Tangerine is a purpose driven brand and our focus over the last 21 years has always been, and continues to be, helping Canadians live better lives.

HB: Digital Transformation is often at the center of these interviews as it’s the largest challenge that most organizations are facing. Seems a little bizarre to be talking Digital Transformation with an organization that has been digital from the jump. How do you look at the Digital Transformation discussion here at Tangerine? Does it keep you awake as it does other Executives?

GS: Certainly, the word Transformation is a little strange in our context, but responding to the expectations that our clients have of us is our top priority. We’ve been relentlessly focused on being the absolute best digital bank in this country. We continue to evolve as digital trends and customer trends evolve so we can build win-win relationships with our clients and Tangerine.

What helps us move fast is what we refer to as the “Single view of the Client”. Because we are fully digital, we have all of the interaction data with our clients.

We are privileged to have our data easily accessible versus having to spend time figuring out how different legacy systems can connect with one another. We focus our time instead figuring out where we’re delivering a seamless banking experience and where we need to improve.

I cannot underscore enough how important of an advantage this is for us.

We’re obsessed with where we can drive a better digital experience, and have no shortage of ideas we want to implement. And that’s what I lose sleep over. Which are the best ideas with the best returns on investment to create those win-win relationships with our clients and Tangerine? Which ideas should we deploy next and which good ideas will have to wait a bit longer? A big part of being strategic is saying ‘not yet’ more often than saying ‘yes’.

HB: That is an incredible advantage for your bank. Talk to me about how you turn that advantage into a positioning that attracts customers to Tangerine? After all, Canadians do have numerous other banking options in this country.

GS: Our promise to the market is Forward Banking, which sets up both what we do and, importantly, the manner in which we do it.

Forward speaks to our desire to be progressive, faster, and reduce the complexity of banking to make it simpler. Let’s be honest, a simpler, seamless, fast solution is really something that a digital bank should be able to uniquely offer. With respect to Banking, there was a segment of the market that didn’t equate us with Banking. We wanted to be crystal clear about that.

Most people look at their banking as a chore, so our task has always been to simplify the experience. No one wakes up in the morning looking forward to paying bills or getting a new bank account. So for us, we need to make their experience seamless, fast, and intuitive. If you want to pause your credit card because you can’t find it, or want to make an extra payment towards your mortgage, all you have to do is go online or on your mobile phone to make it happen. There is no need to speak to someone to do these things. We aim to create a “one and done” digital experience. This is how we add value to our clients on a daily basis – it’s through these micro moments. And we are seeing our clients reward us by choosing Tangerine for more and more of their banking needs.

HB: Phrases like Progressive, Simpler, Reduce Complexity are great sounding words. Particularly from a bank. Talk to me about how those commitments are driven by the Culture and the people here at Tangerine.

GS: (Laughs). I was wondering when we’d talk People and Culture – but you’re right, those commitments that we make to our clients require a very special type of team that is motivated and driven.

Over my 16 years at the company, the topics of People, Culture, and Leadership have been something we’ve spent tremendous time on because, as you say, it is just that critical to our success. I think there are a couple of key themes that help showcase why and how our culture helps us drive forward.

First, our Values – which we call Promises here at Tangerine – and that word choice is very deliberate. Our Promises – which we define as “We Share”, “We Care”, “We Dare”, and “We Deliver” – convey a level of personal commitment that’s very important. And Promises, rather than Values, denotes that very well.

Second, at Tangerine, I think our people are definitely motivated to achieve results. And there a few elements people look for in an organization to see if they can or cannot achieve results. They want to focus on simplicity, they want to move with velocity, and they want to partner and collaborate with others. These things are hyper important for today’s talent, as the best and the brightest want to contribute, they want to learn, and they want a chance to show what they are capable of.

 

To enable this, we have fostered a culture where people can make a real impact, regardless of their role or seniority. We’re very non-hierarchical here at Tangerine and, as you can see from our open plan offices. You will see lots of daily huddles and stand up meetings. Lots of sprint reviews where feedback is being asked for and given. We have tools like SPARK, which is an open-source “ideas” platform where anyone can submit ideas to the organization. All of this is a means of promoting this insight-driven behaviour and curiosity.

We also place real premiums on accessibility – be that direct access to our CEO or access to information on how the business is performing – and transparency. People motivated by power – or a need to be the sole owner of an idea or solution – seldom are successful in our environment.

HB: There’s certainly a quiet confidence – but also an air of humility and humbleness – I’ve detected in my various conversations here. Is that a Tangerine “thing” or am I projecting a bit? Where does that come from?

GS: (Laughs) It’s certainly not something deliberate per se but comes from a number of leadership competencies which are a combination of hard and soft skills, we place particular attention to nurture here at Tangerine. We consider them leadership competencies because whether you’re in a team or working alone you’re leading. Either leading yourself, or leading and contributing with colleagues.

People join Tangerine because it’s a purpose-driven organization with a challenger mindset. We’re not selling accounts. We’re helping Canadians. With just around 1,000 employees, over 2.1 million customers have trusted us with almost $40 billion of their hard earned money to save or invest. We have done this together as Team Tangerine. We’re not worried about where the great ideas come from. And the only super heroes in our story are our clients. We really try to focus on the “how we deliver” and that really is where our leading client experience comes from.

HB: The history books are littered with M&A’s where the “little guy” culture is subsumed by the “big guy” culture and all that good stuff is lost. Where buying capabilities or access to markets has been more important than how well the Cultures will gel. How has the experience been since the Scotiabank acquisition? Have you lost any of your Culture magic?

GS: I get asked this question frequently, particularly because we’re incredibly proud of the Culture we’ve nurtured here at Tangerine. From my vantage point, we’ve gained a lot by being a part of the Scotiabank family. For example, Tangerine will be the official bank of the Toronto Raptors, and that’s not something we could have negotiated alone. We have the opportunity to leverage assets, like the SCENE Entertain Rewards program and the deep expertise in functional areas like Risk, Legal, and Fraud. We have access to Scotiabank’s Global Digital Council, which consists of some of the brightest digital minds in the world. To me, I think we’ve gained a lot of good stuff over the past six years.

Has there been change? Yes, and this is something every company goes through, whether they are acquired, or if they are in growth mode. Otherwise you risk being stagnant. Through it all, our focus remains the same – Our Clients .  It’s the HOW we do it that differentiates us and where the magic happens. We have a unique HOW here at Tangerine and we’re very proud of it.

HB: Let’s talk about those HOW’s for a minute. Can you describe them for me?

GS: Sure. The interesting thing is that I believe if you went back 20 years in a time machine, you’d find these really haven’t changed very much since our inception.

As I mentioned before, we’re a purpose-driven organization and we never take for granted the trust that our customers place in us. We very much know that we have the ability to help them realize their dreams but, at the core, we need to earn their trust with each and every interaction.

The other is this Challenger mindset that we had from the beginning, we always thought about banking differently in a world where, at the time, banking was about physical branches, bricks and mortar. I think Tangerine has helped shape what consumers can expect from digital banks.

That Challenger attitude runs deep in the way we think of innovation.

For us, simplicity is an obsession because that’s how we want our customer interactions to be with us. Banking is complicated enough as it is, why would anyone – particularly a digital bank – chose to make it any more complicated?

 

 

We work with our Clients to ensure we are providing them with the innovations they need, and making sure that everything can be done with a few easy clicks or swipes.

That being said, we’re also looking at how we can help our clients make smarter decisions with their money. We’re providing our customers intuitive digital tools so they can better manage how they are spending their money. We automatically categorize their transactions for them which gives them insight on how much they are spending on fast-food or Uber, for example. Giving clients insights on their spending and saving behaviours is giving them power. It’s going to be game changing for our clients, especially as we leverage machine learning and AI.

HB: I always ask my interviewees what advice you’d give others struggling through their own Digital Transformation. Considering your unique digital-only posture, what gems can you share with your peers?

GS: Listen, being a digital bank, we don’t have the same challenges that some organizations have to deal with. But I think there are some practical things that everyone should do, regardless of where they are on their journey.

The first thing would be to insist that your Customers be your GPS. At Tangerine, we co-create with our clients, this means letting them guide you to places that you might not have originally intended to explore. They’re the reason you’re in business but, importantly, they can help keep your inventiveness honest. Listen to them and let them guide you.

The other thing is getting into the habit of learning fast. Perhaps a better way to say it is be more concerned about what you’re learning than how you’ve tried and failed. This is the magic of digital. Set up a system where you can outline your learning objectives, go and build it with your customers, and then quickly identify what’s working and what’s not working. You have to make sure you have the right people and right tools to be able to do that. This is not easy and we’re also looking at ourselves to see how we can do this better as well.

HB: Wow. That was fantastic Gaurav. Thank you for your time. Any final tidbits for those going through a big transformation?

GS: Yes, perhaps one.

I understand the necessity of “bet the farm” transformations for some organizations.

I would just say that you shouldn’t underestimate the power of simplification. Of course, I would say that because doing things in a phased approach is in our DNA, but being prudent or, better yet, being surgical in what you set out to do and achieve can reap significant rewards. Put some real thought in how to move forward incrementally and surgically.

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I’ve just released my 2nd eBook on the Intersection of Culture and Digital Transformation. It includes a variety of interviews with business leaders in Telecommunications, Beverages, Packaged Goods, Healthcare and Professional Services. Download it for free from http://www.hiltonbarbour.com/culture-ebook-2/

 

Putting Expectations At The Heart Of The Culture At Southwest Airlines

 

For business executives and Culture enthusiasts alike, Southwest Airlines has attained an iconic status that is almost unparalleled. Since its maiden flight in March 1971, the organization has garnered almost every accolade and award possible for leadership, innovation and Culture including consistently placing in Fortune Magazine’s coveted “The World’s Most Admired Companies”. So how does a plucky airline, operating in one of the most competitive categories on the planet, continue to win awards, enjoy legendary levels of customer and employee devotion and loyalty and still operate as a low-cost carrier? Time and again, the answer points to Southwest Airlines unique Culture. I had the wonderful privilege of chatting with Cheryl Hughey, Managing Director Culture at Southwest Airlines to understand her perspective and understand what has allowed Southwest to create such a unique environment.

HB: Cheryl, this is a real pleasure and I appreciate you taking the time to talk Culture. With Culture becoming such a key management topic, you must be inundated with these calls.

CH: <Laughs> We certainly love to talk to folks who are interested in Southwest and our Culture. We believe we have something special here and are proud to demonstrate the heart that makes us Southwest. We try to share our story with those who are genuinely interested when we can.

HB: I always try to ground these conversations in that topical word “transformation”. Can you talk to me about the transformation that Southwest, or your sector, is going through right now and the direct impacts that’s having on your people and your Culture?

CH: Transformation isn’t really a phrase we use. We prefer Evolution because that’s more aligned with how we think and operate. We’ve been on our journey for 47 years and now have almost 60,000 employees but we’ve always been about being nimble, being customer and Employee focused and being swift and decisive to keep us competitive. That has always been in our DNA but we’re now thinking about different ways we have to deliver on that.

What has been critical for all of us at Southwest has been to clarify our Intent, and not just our Aspiration, as we move forward.

That intent is captured in our Vision, which is “To become the world’s most loved, the most flown and the most profitable airline”

The simplicity of that line means we all have absolute clarity on our intent – and we can start to focus our individual and collective energies against that.

HB: That’s certainly a very bold vision. Why has that been important to develop for Southwest?

CH: To be honest, clarity of our Vision has only come into focus in the last five years. Our Values, which we historically referred to as the Southwest Spirit, propels us to reach our Vision. The Values are what we now call Living and Working the Southwest Way with three main tenets: Warrior Spirit, Servant’s Heart, and Fun-LUVing Attitude. These Values encapsulate many of the fantastic behaviours and attitudes of our people. Clarifying these expectations for all Employees was a critical component we needed to make– particularly as we’re now hiring upwards of 8,000 people each year.

Where the Vision has had significant impact is that it sets up a charge for everyone to perform as one Team to achieve. It clarifies what is imperative for our employees to focus on and why that focus matters.

That then cascades down to specific actions like “what are we recruiting for?” “What are we holding employees accountable to?”, “What do we need to equip our people and leaders with to be successful?” and “How and what do we reward and recognize?”

Ultimately, for each one of us this Vision defines what is expected of us individually, how will we be held accountable to that expectation by Southwest and, equally important, what reciprocal expectations should we have of Southwest. That clarity is critical.

HB: That’s a monumental undertaking for a company of 60,000 and growing. How have you instilled this Vision and clarity across the organization?

CH: We have a very important tradition here that we call “Rally Season” each February. Its where our entire Executive team physically gets out in front of our teams and makes themselves available for questions, for sharing stories about where the organization is going and, as you said earlier, how we keep trying to get better in such a competitive market.

Of course, because its Southwest, we have a lot of fun with it too. And while its not entirely about having our CEO Gary Kelly appear in a Halloween costume, which he has done, it is about showing that each of us are held to the same Southwest expectations – which includes never taking ourselves too seriously.

What we do take very seriously though is communicating that competing against ourselves is not part of our Culture here at Southwest. That means demonstrating, at all levels, Respect, Care and Collaboration are critical to our organization’s well-being.

If we constantly demonstrate that care, respect and collaboration to our employees then it becomes something that they naturally demonstrate and live with our customers.

That is why, culturally, the “Rally Season” is so important for all of us at Southwest.

HB: I’d love to see those pictures of Gary by the way. Rally Season highlights what seems to be an incredible commitment to Culture – and all employees – here at Southwest. Why isn’t that commitment more prevalent across other organizations do you think? 

CH: I’m sure we can dig out a few photos of Gary. <laughs>

 

While I can’t speak for other organizations, here at our commitment to these efforts is never up for debate. The amount of heart our founder Herb Kelleher had for our Culture was legendary, and our current CEO Gary Kelly is remarkably similar in that way. I’m very fortunate to have frequent discussions with him and the sensitivity he has for our people is incredible. He is always asking if we’re doing the right thing by our people and ensuring that they feel the Southwest love.

Culture can’t be a program and it certainly can’t be something you switch on and off depending on how your organization is performing. That just signals that its lip service and not really that important to your leadership. And employees know that. You can’t hide that from them.

Culture has been something we’ve believed in from Day 1 and we’d not sacrifice that commitment and investment for anything. Otherwise we couldn’t legitimately call ourselves the company with Heart. That’s very important.

HB: That is a fantastic orientation and Southwest is fortunate to have had a founder with that enlightened perspective. However, I see any number of organizations operating under a perpetual 90-day or quarterly cycle where they’ll make decisions in the short-term because of market pressure. Can you comment on staying true while under significant pressure to perpetually grow?

CH: I can certainly understand that pressure and we’re certainly not immune to that call for growth and financial returns. Let me give you an example of how our commitment plays out and why we believe it is the right approach to achieve that growth and those returns.

Seven years ago we acquired this incredible airline called AirTran. To give you a sense, that meant integrating 8,000 AirTran employees – many who proudly and genuinely loved their company – with 35,000 Southwest employees. That is no small undertaking but it was critical to us that we were particularly sensitive to how we manage the Cultural integration piece. After all, AirTran had some fantastic traditions and celebrations and their employees felt passionately about their airline.

And we certainly didn’t want to lose any of that as so often happens in acquisitions and mergers.

Our consultants at the time were amazed that we were so concerned by that because they hadn’t seen that be a consideration in other acquisitions or mergers they’d done. But it was critical to us.

“How would an AirTran person feel about that gesture?”

“How might we get an AirTran person to actively be part of this transformation?”

Ultimately it came down to “acting with heart” as we always try to do here. If in difficult times we always chose to act with a good intent and make sure our focus is on leading with heart, we’re confident we’ll do the right thing. Not always of course but more times than not.

In the end we created a “Wingmate” process where each and every AirTran person was paired with a Southwest person so they could get to know each other personally, share stories and get to know how we were actually remarkably similar in how we operated. Ultimately it was about doing everything to create a genuine “One Team” attitude which is very close to our heart.

Our consultants were surprised but, for Southwest, these decisions aren’t just about a positive financial outcome but it’s as important that the Cultural outcome is positive too.

HB: Wow, that really is a commitment to Culture. Particularly in an activity like an M&A. Kudos. Is there ever been situations where you’ve gotten the Culture piece wrong? Where you’ve misread your employees or over-stepped? Does that ever happen here?

CH: I’d love to say we always get it right. We don’t. It is a very fine line to ensure that we always have the employee voice present in the decisions we’re making and we certainly have many amazing employee councils feeding into the process. That’s about being diligent. But even then, we make mistakes.

Here’s an example that might seem small to an outsider but it was significant for our employees.

When we undertook our beautiful brand refresh five years ago – putting that beautiful heart on all our aircraft, uniforms etc – we unveiled a new design for our service anniversary commemorative pins. You have to understand how these pins are cherished in our industry because they symbolize tenure and, in many ways, that person’s commitment to an airline. It’s huge.

Well when we unveiled the newly designed pins there was a huge employee outcry. How could we change an icon like that? Why were we changing the culture here at Southwest? So we took this to our CEO Gary and he said “Okay, maybe we need to just pause on this part of the refresh project and engage our people a little more” So we went out to get employee comments – and did we get a lot – but we also asked them to submit ideas, submit designs and so on.

Ultimately we arrived at a design that our employees adored. Equally important we showed that we could acknowledge where we’d made a mistake and how we’d tried to genuinely address that. It was a small example – especially when viewed from the outside – but it was an important example of that caring, respectful Southwest attitude we talked about at the beginning.

HB: For an organization with such a commitment to people, you must be drowning in job applications to join Southwest. How do you handle recruitment and training in a way that ensures you’re positively impacting your Culture?

CH: We are very fortunate that we do receive a large number of applications to join Southwest. Its important to point out – back to those expectations – that each new opportunity is posted internally first. That’s about ensuring our people who’ve grown here at Southwest get the first opportunity to keep growing.

To give you a measure we have had over 28,000 applications for 1,400 flight attendant roles. But its not just about the numbers its about ensuring we can align for Values fit and that processes like our Onboarding efforts are aligned too. After all, Onboarding is the start of our relationship with an Employee and it’s a key moment to highlight our promise to them around care and respect. It sets the tone for living up to the expectations we have of each other.

The other part is the changing face and expectations of the workforce. We talk a lot about Millennials and their job expectations but we think it’s as critical to think about Boomerangers who leave but want to come back. We’re seeing Millennials being around 50% of our New Hires and setting up expectations with that group is just part of an inevitable evolution we’re going through. We’re certainly very proud of how low our turnover is – less than 3% which is remarkable – but we also need to set that number in the right context. Certainly many people join us as their 1st job and it either isn’t what they thought it was going to be, which is okay, or – as we’re seeing with some of our Employees – that this job is a stepping stone to another adventure or a different path. That’s okay too.

HB: Cheryl, this has been incredibly insightful and an absolute delight. I always ask my interviews what advice they have for others grappling with these Culture related questions and struggles. What advice do you have to share?

CH: Well that’s very kind but we certainly don’t have all the answers. What we are always happy to do is share the lessons we have learned.

Here’s a few that stick with me from my time here at Southwest.

Do you have the right leaders in place? Leaders that are absolutely committed to leading according to the values your organization has determined are critical.

Are you absolutely clear on what those values are? Clear in terms of what expectations are set for your people and what your people can expect of the organization. That two-way street is crucial.

Finally, what is the commitment you’re prepared to make in real terms – that means actual dollars, actual time and actual people devoted to this – inside your company.

Like any endeavor the outcome is directly related to the commitment you’re prepared to make.

I hope that answered your question Hilton.

HB: 100% – for an organization with Heart, and one that prides itself on Love, that was a perfect response. Thank you so so much Cheryl. 

How Argentina’s GLOBANT Uses Culture and Technology To Drive Transformation

 

The greatest delight running this series of interviews on Culture and Digital Transformation is the exposure to incredible organizations doing really smart work. Organizations that I may not have come across in the course of my daily work. Globant is a fantastic example of this. Founded in Argentina, Globant has been recognized by everyone from IDC to Fast Company and East Capital for their Innovative Products, Growth and Corporate Governance. What I was not prepared for is how deep their belief in Culture is. For the Globant Executive Team, Culture is not a “nice to have” but the entire backbone of their organization. I caught up with co-founder and CTO Guibert Englebienne and Sanja Licina who leads their Future of Organization’s Studio from their offices in beautiful Buenos Aires.

HB: Overjoyed to be chatting with you both. I must admit I was unaware of Globant before we connected but your organization is very impressive and certainly has a fantastic track record and enviable client list. Can you tell my readers a little of your history?

GE: Sure. I sometimes forget that, in some regions, we’re not as well known even though we’ve been working with some fantastic clients for over a decade. In that time we’ve grown to almost seven thousand employees in 37 Globant centers across 12 countries. Of course deep roots in Latin America, where we’re seen as one of Argentina’s “unicorns” and, as you would expect, a growing and vibrant Asian footprint too.

We started 15 years with, as I joke, $5,000 and the blessing of a Buenos Aires’ bartender but since that time we’ve seen explosive growth and some great achievements. Google were one of our first key successes when we started working with them in 2006. That accolade has opened numerous doors for us and, touch-wood, explains why we’re running over 1,000 active projects for clients at any given time. We’ve been fortunate but, as any founder will tell you, that has required some real introspection since we started. What are we trying to build? What is the impact we want to have?

 

 

HB: I can just imagine. 15 years in the technology services space must feel like a lifetime when you consider how much has changed in that period.

GE: Early on I was fortunate to have a very profound conversation with an old friend and respected marketer here in Buenos Aires. He asked me what business did I think I was in. Perplexed, I told him I was obviously in the technology business. He laughed and told me the example of Kodak who thought they were in the film business but if they’d acted as if they were in the memories business, their end might not have happened. One other example that really struck me was the film director who said his job was to transport his audience to a magical place and back safely to their seats at the end of the movie. It genuinely caused me to think long and hard about what business I wanted Globant to be in – and it wasn’t just going to be the technology business.

Finally it came to me. Globant was in the fitness business or, more specifically, Globant was in the personal training business.

HB: Excuse me, Globant is in the Personal Training business? You’re definitely going to have to give me some details on that.

GE: (Laughs) That’s exactly the reaction I got from my fellow Globant executives. Let me explain.

We’re helping our clients build the stamina and the energy to fight the strongest (business) challenge they’ve ever faced which is digitally transforming their business. Our job is to help them get ready for that. To build their strength, their flexibility, their mental attitude. We’re just doing it to their company.

That description also helps us avoid the rather unfortunate phrase – Digital Transformation – which I think is wrong. What we’re talking about is a complete rewiring of the organization. Look at it this way. 25 years ago if you were considering entering into Retail, you’d look at WalMart and try to see how you’d compete against them. Today your reference is Amazon and that stretches beyond Retail. You’re now considering how you win, or defend, against an organization with roots in Retail, Film, Mobility, Distributed Web Services, Space Exploration and even Media with Bezos’ ownership of the Washington Post.

That needs an entirely different way of tackling the problem that goes beyond Transformation.

HB: I can see how the complexity of competition has changed. So, as a personal trainer to organizations, what is Globant’s perspective on how to win?

SL: We believe there are four critical components that an organization of the future needs to master. In many ways these four have come from our own internal experiments within our company and now, as part of the Future of Organization’s Studio, we’re trying to help companies navigate.

Culture is #1. The critical need for every employee to feel valued, to have a voice and be able to bring their best ideas and energy forward every day. Empowerment is part of it but it’s about channeling and reinforcing that energy.

Execution is #2. An organization has to deliver. Build and ship products. Get stuff done and into the hands of customers and partners. Simple as that.

Technology is #3. Surprising because we’re a technology company, but technology to us is the way that organizations reduce siloes, get ideas to market faster, cheaper, with less friction and internal stress. We never lead our engagements jumping straight to the technology.

Reinvention is the 4th Pillar and often the one very few organizations spend much time in.

At Globant that means thinking about what is going to disrupt the business and proactively building competencies to reduce that disruption. Or how to turn it into an advantage by absorbing it into the company itself. These days that could be game theory, AI, Big Data, Social Commerce or any other of the myriad emerging trends out there.

Within Future of Organizations, we’re actually trying to see if we can make organizations think and act like a living organism than a set of departments and divisions.

HB: I’ve heard a lot about organizations as living organisms. How is this informing what Globant is creating for their clients?

GE: To us, many organizations suffer from severe misalignments which keeps holding them back. Many of those are Cultural in nature, which is why Culture is the #1 Pillar in our view. Misalignment between those setting Strategy at the top and those tasked to execute it at the bottom. Misaligned objectives which creates siloes, hampers true collaboration and means the organization can’t learn. Just think how much personal information we’ve given Banks, Airlines, Car companies, Hotels and yet they still seem unable to do anything meaningful with it.

 

We’ve seen organizations build transactional systems like SAP/ERP. Then build collaborative systems like Slack, gmail but what’s been missing is systems built on human behaviours and human qualities like creativity and empathy.

Systems that are more like amniotic fluid than anything we use in organizations today. Think of them as systems that surround, nurture, feed, shelter and provide growth for the people inside an organization. Those would be truly transformative.

This began as an experiment internally here at Globant and we’re poised to release it to other organizations that want to build something similar.

HB: I love the idea of Cultures that are like an amniotic fluid nurturing employees but how does that happen within Globant. What are these experiments and what have you learnt?

GE: Early on we realized the futile idea of putting “company values” posters around our buildings and calling that our Culture. We also were watching an explosive growth in the number of Globant employees and offices and seeing, first hand, what happens to when you grow from 100 to 1000. Initially you know everyone’s name, hobbies, wives and favourite football teams but then you’re getting in an elevator and you know one person in ten. That start-up connection, camaraderie and intimacy gets lost quickly.

We wanted to see if we could build something that kept that connection alive but, because we’re data geeks too, could give us meaningful information on our people and our culture.

 

So we built a number of mobile applications that we’re proud to have launched recently under our StarMeUpOS platform. In truth they began as a number of various applications to address elements like social reputation, social recognition and connectivity. So unlike those old school posters, we wanted Culture tools to be inherently mobile so we could leverage all the great things mobile tech has brought us. Accessibility, ubiquity because all our employees would have it, instantaneous reaction and participation. All those classic “micro moments”. But the results we saw internally – and what we’ve subsequently learnt – were remarkable.

We immediately saw that we could map the levels of integration and collaboration between teams, projects and even individuals across all our offices. How well a new office was integrating with existing offices. It helped us identify people (culture carriers?) who were the unsung and invisible heroes who connected teams and drove integration of projects. It was fascinating. In fact it was so helpful identifying these integration people it helped us know the perfect team to assist one of our new offices who were struggling to integrate with their regional partners. Without the data I can guarantee we would, like most other companies, have sent people based on their job titles. These applications helped us send people with the right skills, not just the right job titles, to get it done right.

HB: That’s an incredible example, particularly because many organizations realize that the real source of smarts in their buildings aren’t always the most senior, most tenured. But identifying these “hidden” assets is incredibly hard.

SL: Yes, that’s why we were focused on trying to build systems – that amniotic fluid – which could provide immediacy because we knew immediacy often has the most impact with people. Be it recognition, or participation, immediacy is critical. The mobile technology was the mechanism but it had to be about creating more humanity in how our people worked together.

Ultimately, without humanity we believe organizations of the future will fail. We see participation building intrapreneurship and that builds competitiveness. That’s what organizations are desperately looking for.

HB: That level of immediacy and transparency sounds fantastic but doesn’t that require a rather unique organization? An organization – or set of leaders – that aren’t intimidated or worried by that openness.

GE: You’re probably right but we think that kind of openness is the only way organizations of the future are going to have to think and act. Hierarchies may have worked in the last century but they’re arcane and outdated for how people want to work today – and how organizations need to structure themselves.

That means leadership that doesn’t rely on shouting orders to junior people but leaders who see their responsibility as one of creating conditions for success. Conditions where teams can self-organize and where employees are employed around finding solutions rather than being allocated according to rigid hierarchies.

And where those conditions are generating droves of data so the organization can observe, can learn and can adapt. That’s the only way anyone can hope to be successful. If they’re unable to be fluid, then they’ll lose to the competitor who is.

HB: This discussion of an amniotic, fluid and intelligent organism has really been fascinating. I always ask what advice do you give new Globant clients who approach you to discuss Digital Transformation?

GE: We’ve covered much of it already but I always come back to mindset and to Culture. Is your mindset considering the impact at each and every level of your organization of this transformation? Have you got a way of selling the dream of your transformation but also a way to ensuring the dream is actually taking root and happening. That’s the Culture piece. What’s your ability to know or map your Culture? Can you see where resistance is forming or change is accelerating? Which teams are actually transforming or which need help and more guidance? You can’t transform without having that in place.

Of course, it certainly helps if you know what business you’re in too. (Laughs)

HB: Phenomenal chat guys. To find a technology company – sorry Fitness company – so driven by Culture is absolutely fantastic. Thank you so much.

EB/SL : Our pleasure. Gracias y tenga cuidado Hilton.

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I’ve just released my 2nd eBook on the Intersection of Culture and Digital Transformation. It includes a variety of interviews with business leaders in Telecommunications, Beverages, Packaged Goods, Healthcare and Professional Services. Download it for free from http://www.hiltonbarbour.com/culture-ebook-2/

How Do You Balance A Culture & Business Transformation?

 

My wife loves Mark Walhberg.

I mean she has a very serious crush on the former Markey Mark and his world-class abs. Which might explain why we were watching one of his movies – “Shooter” – for the 4th time recently. As added context, I wasn’t closing the gap on “Mr 8-pack abs” by slurping my way through a pint of Ben&Jerry’s either.

In one pivotal scene Walhberg is coaching Michael Pena on the discipline and focus needed to be a sniper when he utters the immortal Zen sniper line:

“Slow is smooth and smooth is fast”

I’ve always loved the weird mental hurdles and conflicts inherent in that saying because it perfectly articulates what I’ve seen and heard repeatedly in the Culture and Digital Transformation interviews I’ve conducted.

An organizational imperative – nay impatience – to transform at the speed of the market. Or at the speed of a market driven by 90-day analyst calls and leadership tenure of less than 3 years.

Balanced with a reality that Culture – the People part, not the Pixels part – doesn’t change with nearly that speed or with that certainty.

This reality can be a source of significant frustration for many executives and may explain why many would prefer to ignore the Culture piece entirely or seek quick cosmetic fixes that do more to impact “climate” than they do to actually transform Culture. This excellent piece from Culture University on Climate is a great read.

Addressing climate is not the same as transforming Culture.

Among many of the excellent sayings Culture expert Edgar Schein posits is this one – “Culture arises through shared experiences of success” – with the words I’ve underlined a critical component.

Shared experiences is important because it highlights that more than one individual, one team, one division must be involved if it can be considered a cultural transformation. Sure it must start somewhere and blossom but it can only be considered a transformation if it spreads and takes root across an organization.

Success is critical too. And, as any Change Management expert will attest, that often means false starts and mis-steps occur before success genuinely happens. Success means you need to have a clear definition of what success means for your Transformation. It also requires the acuity to measure and track success. Finally success needs to be sustained – particularly because many Culture Transformations go through the very real employee skepticism of “here we go again…” and “Oh boy, another Management bright shiny fad is working its way down the pipe…” Moving from your current Culture to your desired Culture requires your colleagues to see that the behaviours that epitomize “success” are actually consistent and not just episodic or a flash in the pan.

So what can impatient executive do to transform their Culture at something approaching the velocity of their Digital Transformation?

#1, acknowledge that you’ll need to address your Culture at some point and that human beings do adapt and change slower than the speed with which you can upgrade your servers or switch to a cloud-based SAAS model.

Brian Fetherstonhaugh summed it up beautifully in one interview when he said “Culture is a deliberate, relentless, often expensive and painful set of choices you make every single day.”

#2, do some type of Culture Audit or Culture diagnostic to truly understand what Culture you currently have. That isn’t an Employee Engagement Survey (sorry guys) but a genuine Audit that has both qualitative and quantitative components. Your CIO isn’t going to transform your IT infrastructure and vendors without comprehensively auditing your current systems, why would you try to transform your people without knowing exactly where your Culture is today.

#3, accept that Leadership carries a disproportionate responsibility for the efficacy and velocity with which any change occurs. That means YOU are a key determinant. Saying one thing and doing another will doom a Culture Transformation faster than a lack of funding or a poor definition of success. Leadership style – are you building trust, transparency, openness?and Leadership commitment – are you in in for the long haul? Are you prepared to make the tough calls? – are critical and those can’t be delegated.

#4, have a realistic expectation of the speed that a full Culture Transformation will take. Factors like size, geographic spread, societal culture, industry vertical are all factors which can’t be dismissed – see #2 above – but even taking those into consideration, studies suggest it takes at least one organizational generation for Transformation to go from identification to implementation to adoption.

I was intrigued by this article by Barry Phegan on CompanyCulture.com where he suggests an exponential relationship between the number of employees and the time required – all other factors being equal. 10 employees = 1 Year, 100 Employees = 2 Years, 1,000 employees = 3 Years…and so on. If you’ve got any evidence to support or refute Barry’s assertion, I’d love to hear about it.

That time scale shouldn’t curtail your desire in the slightest and shouldn’t prevent you from starting either.

Perhaps the most important step to ask yourself is one that Edgar Schein raises in many of his books – Why do you believe you need to transform your existing Culture in the first place?

While Digital Transformation is the business imperative de jour, I sometimes question how many organizations are doing it because it is genuinely critical to their survival or because everybody else seems to be doing it and they can’t be seen not do it.

Knowing the complexities of a Culture Transformation, and the potential margin for error, perhaps the best start is to repeat after me…

Slow is smooth, smooth is fast

Then, in time you can graduate to

It’s such a good vibration

 It’s such a sweet sensation

 It’s such a good vibration

 It’s such a sweet sensation**

I’ve just released my 2nd eBook on the Intersection of Culture and Digital Transformation. It includes a variety of interviews with business leaders in Telecommunications, Beverages, Packaged Goods, Healthcare and Professional Services. Download it for free from http://www.hiltonbarbour.com/culture-ebook-2/

** – lyrics from “Good Vibrations” by Marky Mark and the Funky Bunch. Now this is what my wife really crushes on.

CULTURE & DIGITAL TRANSFORMATION – Creating the Modern Marketing Organization and Culture at Ogilvy

 

As a proud Ogilvy alumni, it was a rare treat to interview the Chairman and CEO of OgilvyOne Brian Fetherstonhaugh for this series on Culture and Digital Transformation. As one of the most storied communication agency networks globally, Ogilvy is truly an iconic organization. Founder David Ogilvy’s poignant and timeless missives on organizational imperatives (“We sell or else”) and culture (“Hire people bigger than yourself and we become a company of giants”) are legendary and still appear daily in LinkedIn feeds.

Brian has worked on the global stage with Ogilvy for over 20 years and now leads a global team of over 5,000 in 40 countries. Through his work with an enviable roster of Fortune 100 clients that includes IBM, American Express, Nestle and Unilever, Brian has a unique purview on how all organizations – and global  agencies – are attempting to digitally transform and manage their cultures.

On the day we spoke, Brian was sponsoring a storytelling training course for a team of Ogilvy data analysts.

HB: Brian, appreciate you taking time from the training you’re sponsoring. Storytelling and data analysts? That’s an unusual mix isn’t it?

BF: No, not really. Training has always been such a core part of the Ogilvy culture across the board. And, data is so foundational to modern marketing that if our analysts can find – and tell – the stories in the data, the more likely we’ll be able to create compelling work for our clients.

HB: You’ve spent much of your career at Ogilvy. Can you tell me a bit about that journey and what is your current mandate within the company?

BF: I started at P&G in Canada before moving over to Ogilvy&Mather and becoming the CEO for Canada. Shortly after we won the IBM business, I moved to New York to lead that account globally as they were going through their “e-business” transformation. Subsequently I’ve led Ogilvy’s Brand Council which is the group responsible for our top 20 clients globally. In 2005 I was appointed to run OgilvyOne the fast-growing digital and data division within our firm.. I’m an advisor to a number of start-ups here in the US and in Canada and am actively involved lecturing at universities across the country. My passion for talent, people and career growth lead me to publish “The Long View” in 2016 which, I’m proud to say, was well-received. So, yes, I have been at Ogilvy for much of my career but the organization has provided me numerous diverse and challenging opportunities along the way. From running a country, to running a massive piece of business to leading a global division. It has been amazing.

 

HB: You have a unique purview. Leading a transformation of your own organization but also having a line of sight into the transformations happening within your clients. What insights has that given you into Digital Transformation?

BF: Digital Transformation simply means putting digital at the center of the organization’s business model and it cascades from there. How the organization operates, how it connects to customers, partners and employees and how it looks for growth all comes from putting digital thinking in the center.

When I joined OgilvyOne it was still largely focused on direct mail. Digital was less than 10%. In a decade digital is now 100% of how we think, operate and grow. That journey has impacted all facets of our organizations. From our business ambition to the clients we seek and the relationships we build, to the investments in people and capabilities we make. I’m proud to say we grew organically every year, not through acquisitions, and also within the parameters of a disciplined network structure like WPP. Overall our own transformation has been quite remarkable. Recently Gartner put Ogilvy in their Leader Quadrant of digital agencies globally. That was a huge validation of our journey.

But it certainly wasn’t easy and we definitely learned a lot along the way.

Early on we brought in all sorts of new people with great new ideas but many of them didn’t bond with our Ogilvy culture so we had huge attrition.

Transformation cannot mean flushing your existing culture and we learned that important lesson very early on.

You have to find people who have the new thinking but critically who also embrace your culture. That’s paramount.

Not surprisingly we place a tremendous amount of emphasis on both the emotional and the functional onboarding for people into our organization. The functional stuff like who pays my expenses and who is the lead on this business but the emotional components – the Ogilvy ethos – is even more important. Bonding the employee experience to the culture is critical. If you don’t get that part right, it can be enormously disruptive, even destructive.

HB: Ogilvy has always had a strongly codified culture and set of values. Can you talk about some of those and how they’ve changed through this transformation?

BF: (laughs) Well we’ve the unique benefit of having a Founder culture where the founder was an incredible copywriter. Many of David Ogilvy’s original ideas for this agency are as applicable for a digital first world as they were when the agency started. So the values may not have changed but we’ve certainly spent time evolving the associated behaviours.

HB: Can you give me some examples?

BF: Some guide the way our people conduct themselves but, as we’re in the professional services business, it has to impact the clients we consult to as well.

“Ladies and Gentlemen with Brains” and “1st Class Business in a 1st Class Way” are definitely attitudinal. The classic Ogilvy mantra “We Sell or Else” explicitly states the impact we have to have for our clients and ourselves. These are all about a civility within our culture but certainly an emphasis on discipline, professionalism and accountability.

One of the other lessons we learned in our transformation is that we’d become a little too theoretical and academic in how we conducted ourselves. That lead us to reimagine the behaviours we wanted from the marketers we have here. Those include attributes like “Trusted advisor” – do clients trust that you have their best interests at heart in the decisions you make and advice you give? – “Talent magnet” – do talented people want to work with and for you? – “Modern marketer” – do you approach a client problem with no preconceived ideas about the solution and do you have a bias for speed and are outcome-focused? Others like “Do you have Innovation and Growth genes” are quintessentially digital behaviours. This is all about moving from a “Me to We” and collaborative set of behaviours.

In addition to the culture components, we’ve also been looking at our operating model too.

We’ve collapsed our Ogilvy infrastructure into a single P&L from the 1100 we had previously and instituted a single unified operating process for everything from strategic planning to briefing. We’ve also begun a systematic consolidation of our leadership and how we train our top 200 leaders. All of these initiatives have been a massive investment of resources over the past 18 months but, acting in concert, they are the core of Ogilvy’s transformation.

HB: That’s a significant set of initiatives. Is the Ogilvy transformation complete? What are your signs of success?

BF: Not at all but we certainly believe we are well on our way. We certainly have more work to do in our onboarding and parts of the employee experience but we’ve come a long way since those early days a decade ago.

The Gartner recognition was great but I consider our new North American leadership structure the most visible sign of the transformation – and our unique culture.

When we collapsed our P&L’s we also removed our previous leadership structure by removing office CEO’s and business unit CEO’s. To replace that structure, we created a cadre of eight client team leaders. That meant evaluating over 200 of our top leaders to determine the best eight. After a rigorous process – including rounds of discussion and voting – we emerged with eight new leaders. Here’s the part that really signals our culture. 50% of those leaders were female. Many came from offices outside the traditional ones like New York, Chicago, LA. And these leaders also came from disciplines and specialties beyond the classic advertising domains.

The composition of these eight leaders – and the remarkable talent they possess – is the truest testimony to our transformation.

HB: That’s incredible. Are there Digital Transformation examples from your Ogilvy clients that you consider particularly powerful and compelling?

BF: Nestle has done a nice job transforming a very traditional business for the digital world.  One of the smart moves they made was to create Digital Acceleration Teams  recruiting a set of rising stars from across the entire Nestle organization and from a cross-section of roles and functions. They were brought to Nestle’s HQ in Vevey Switzerland for an intense digital training before going back into rotation within Nestle. Nestle refers to them having a course of “digital vitamins” but its more profound than that. You’re creating a group of exceptional talent – that is culturally bonded to your organization – and you’re creating deep bonds between them that they then propagate throughout Nestle when they return. It’s really smart and a great way to proliferate and infuse the organization with a digital ethos.

HB: Excellent example. And, on its face, a relatively simple exercise. Why then, do you think that so many organizations fail to invest in the Culture part of the Transformation or don’t seem to believe it is important?

BF: I don’t think that any executive doesn’t believe Culture is important but, honestly, it’s a whole lot tougher to tackle that a software or technology implementation.

Culture is a deliberate, relentless, often expensive and painful set of choices you make every single day.

There is no “one and done” because every single day you’re onboarding new folks, course correcting someone, rescuing or recalibrating someone. If my own personal experience is anything to go by, it is also often done in the room face-to-face and nose-to-nose. That’s not for the feint of heart. Ultimately that comes down to relentless repetition and consistency, walking the talk and modeling the behaviour. Its grueling. But you can’t escape it if you want to do it right.

Now consider what happens when you’re trying to transform.

Often you’re having to fire your friends. You’re having to let people go because their skills are either no longer relevant or they haven’t the desire to change or improve their skills. That’s a really hard – and emotional – situation to face as a leader.

From my experience, for every dollar spent on a piece of technology an organization should expect to spend three or more dollars on change management and culture initiatives. Extrapolate across a global organization and you can appreciate the challenge for many executives.

One distinct advantage we have today is that measuring and tracking these elements is now possible. You can keep a finger on the pulse of your people, your clients, and the market. That’s invaluable because it means you can react and respond. At Ogilvy, we have a constant set of tracking in place with clients and employees to gauge our performance. We may not always like what our employees tell us but we definitely place a huge emphasis on tracking and listening to what they’re telling us.

HB: Considering you’ve now been on this transformation and culture journey for more than a decade, what advice do you give fellow executives that are either starting out or immersed in the weeds right now?

BF: I’ve alluded to some of it earlier. Bringing in new people for new ideas and thinking is key but not vetting them for cultural fit can be a disaster and really set you back. Letting your Digital Transformation agenda quickly dissolve into purely a “technology” project is another common mistake. That $1-to-$3 investment I mentioned earlier feels right to me from what I’ve seen and discussed with other leaders. That requires setting Transformation as a “whole organization” agenda versus a “technology” initiative.

The other part – and I don’t have a neatly packaged answer for it – is who owns the Digital Transformation accountability. Yes, the CEO has to visibly endorse and support it but who actually pushes it through. Does it require a Transformation Czar? I certainly believe it requires a small recipe of C-suite executives – from CTO, CHRO, CMO etc – but there definitely has to be a 1st amongst equals mentality to drive it to a successful completion. Who that “1st” is may differ by organization but I do believe that’s often overlooked.

HB: This has been a fascinating chat Brian. Any final thoughts before I let you get back to your storytelling data analysts?

BF: I am a huge believer in transformation, so thank you for including me in the conversation. In some ways I consider myself very fortunate. Each morning I wake up and see two Ogilvy quotes – “We Sell or Else” and “We are a Teaching Hospital”. As a leader that gives me a pretty clear description of the job I have to do.

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This post is part of an ongoing series exploring the intersection of Culture and Digital Transformation – and the challenges organizations face when those two forces meet. This challenge will shape the business agenda for the next decade so we all have a lot to learn. 

If you’d like to share your story, please DM me on Twitter @ZimHilton or reach out via LinkedIn.

Want to find out how Starbucks, Coca-Cola, L’Oreal and other organizations are tackling the intersection of Digital Transformation & Culture? 

Download the rest of the series in a special FREE eBook available here:

 

How Messaging Can Help Align Customer Experience and Employee Experience

As the market for customers – and for talent – becomes more competitive it becomes critical that businesses continue to build a cogent and consistent perception of their brand in the market.

There is no difference between a prospect and a prospective employee.

Too often businesses make the mistake of separating the two audiences into two distinct groups. The issue with that silo-ed “distinct group” mentality is, at best, message inconsistency or, at worst, messaging that confuses both groups.

“What does this company really stand for?” is not the reaction any business wants from a prospective customer.

“I’m not sure I understand why I would join that company?” is not the reaction a business wants from top-notch prospective talent.

Messaging consistency is a critical point of alignment for any organization but, in particular, organizations in the service sector need to pay particular attention to this consistency. At a strategic level any service organization’s ability to create – and deliver – a consistent customer experience requires having the right motivated and aligned talent inside the firm.

That alignment of customer experience and employee experience happens at many levels. But it starts with getting the fundamentals right – like consistent messaging and consistent communications.

Customer Experience is Employee Experience

Customer Experience has rapidly become one of the hottest topics and management imperatives of the past decade. As customers have demanded faster, better and more personalized interactions with brands and businesses, creating a memorable customer experience has become a critical requirement.

Depending on the category – and the specific situation the customer faces – that customer experience can span the spectrum from a high-touch “surprise and delight” moment of reward to a very low-touch efficient but unobtrusive answer to a burning question like “what does my insurance policy cover?” or “can I change my seat on this flight?”

Brands from the “Services” sector, like hotels, airlines and financial services, need to be particularly sensitive and very adept at delivering these experiences.

Delivering a generic “reward” can irk a high-value customer and make them question their brand loyalty.

Equally, making the answering of a simple question anything but simple can frustrate a long-term customer and make them look for alternate service providers.

Business leaders understand the critical nature of getting their Customer Experience right and appropriately tuned for the needs of customers in their sector. With customer acquisition – and customer retention – hanging in the balance, it is not something any organization can afford to get wrong.

However, what business leaders aren’t always as finely attuned to is the inextricable link between Customer Experience and Employee Experience.

Even though we live in a world where many of our experiences are delivered directly through a mobile device and many customers actively seek out self-service options that they can control, it is an organization’s employees that carry the burden of delivering the optimal customer experience customers demand.

And as our significant investment in marketing and advertising looks to convince new prospects, and remind existing customers, that our service is better, faster, safer, more personalized, more efficient or more effective, we increase the expectation amongst those audiences.

And increase the burden on our employees to get it right every time.

It is no coincidence that Southwest and United Airlines are considered polar opposites of the customer experience spectrum. The former has an enviable reputation for delivering a personalized, enthusiastic and fun experience for all travellers. Three words that are seldom used to describe North American air travel in 2017. Despite being a low-cost airline, Southwest regularly posts NPS (Net Promoter Scores) results that dwarf their larger, full-service competitors and highlights that their financial success can be directly attributed to the experience they deliver. United, in stark contrast, has become the butt of internet memes and faces several federal investigations for a slew of complaints – and a very public passenger “assault” – resulting from the poor experience delivered by their gate personnel and flight staff.

For an organization whose slogan is “Fly The Friendly Skies” the irony and inaccuracy of that line is poignant. But, and this is the critical take-away, the disconnect between the experience promoted in United’s advertising and the actual experience delivered by United’s employees couldn’t be further apart.

The potential damage to a business’ reputation and credibility when expectation and delivery aren’t perfectly aligned cannot be under-estimated. Aligning customer experience and employee experience is the business imperative that all leaders should be focusing on to ensure that alignment happens.

What’s Employee Experience Anyway?

Employee Experience is the sum of the total experience a person has with an organization. We deliberately say “person” versus “employee” because the employee experience begins way before they ever sign a contract to join your organization and can continue way after they leave your organization and become an alumni.

A well-constructed employee experience ensures that a cogent – and consistent – experience is delivered at all these typical stages in an employee journey.

Talent Need Definition

Talent Sourcing and Recruiting

Interviewing

Contract Negotiation

Onboarding and Training

Promotion (or Review)

Mentoring or Coaching

Termination

Exiting

Alumni Relations

With the same rigour that organizations put into identifying and addressing critical “moments of truth” in a customer journey, the same rigour and attention needs to be placed in the employee experience and employee journey. Just like the loss of credibility United faces in the market today, any employer brand that advertises how important its people are or how caring their culture is had better ensure that they’re prepared to deliver on just that.

And for any employer brand leader that believes they can get away with a poor – or even worse, disingenuous – employee experience should spend time looking at employee reviews on websites like Glassdoor or LinkedIn to see just how public (and scathing) poorly treated employees can be in their derision.

 Why is Employee Experience So Important?

If you believe that your employees carry the responsibility for delivering an award winning and competitively differentiated customer experience, there can be no more critical business requirement than ensuring the people you attract, hire and retain are up for the task.

Do they understand what your organization is trying to achieve?

Do they have the strategic context for the decisions that are made around them? This is a foundational part of building a cogent Culture, a topic for another post.

Do they understand what differentiates your organization from the competition? In low-involvement or commoditized sectors, service is often the only real differentiator you have.

Are they motivated by what your company is trying to do and how it is differentiated?

Do they have clarity on how they can individually – and consistently – contribute to achieving those goals and reinforcing that differentiation?

Can they accurately describe the behaviours and attitudes expected of them while they’re employees of your organization?

Can they self-manage their own behaviours to ensure they’re acting in an organizational appropriate manner?

Can they model the behaviours and attitudes required by the organization? Are they “walking the talk”?

If properly constructed, each stage of the employee experience offers a unique opportunity to communicate, reinforce, discuss and, if required, modify any misalignment between the individual and the organization. As the list above highlights, different moments within the overall employee experience provide the perfect environment to get that alignment.

Organizations with strong cultures are relentless in ensuring that there is an alignment between the values and behaviours of their employees and the values (and behaviours) of the organization itself.

As Issy Sharpe, founder of the Four Seasons an organization famed for the exceptional service delivered by each and every one of their staff, famously said:

“We hire for attitude. We want people who like other people and are, therefore, more motivated to serve them. Competence we can teach. Attitude is ingrained.”

Your Employee Experience is the way to ensure that, from the very beginning of your search for the best talent in the market, you attract people with an attitude that reflects your organizations.

The Role Of Communications In Employee Experience

The journey really does begin with communications. Communications that are consistent between prospects and prospective employees.

Virgin is an oft-used example of an organization that gets this communication consistency right. Regardless of the distinct division – Virgin Hospitality, Virgin Mobile, Virgin Orbit or the myriad of other subsidiaries – the unique and distinct language, tone and quirky Virgin humour is always there.

As these examples show, there is a distinct way that Virgin reaches out to prospective employees – whether that is to be a Chef in Chicago, a space cadet engineer in Florida, a salesperson for their mobile division in New York or in their Hospitality division.

Virgin Orbit

Virgin Mobile

Virgin Hospitality

Virgin Hotels

The amazing part of these four examples is that they were likely written by different divisions, by different people, in different locations, for different roles.

Yet the Virgin point-of-view, the critical Virgin attitude to “teamwork”, “service excellence” and “customer excellence” is unambiguous and explicit.

Candidates applying for these roles have a very clear sense of what Virgin believes are key attitudes to “win” inside the Virgin organization. The experience and skills required are obviously different for each role but the Virgin attitude is not open to debate or conjecture.

This is the brand consistency that aligns customer experience and employee experience.

And it starts with communications.

And the most famous service brand on the planet?

Well here’s how Zappos communicates the ethos and attitude of the company and the hiring notices for various roles in their Las Vegas headquarters.

Zappos ethos

Senior Site Reliability Engineer (whatever that is)

Senior UX Developer

Paralegal Assistant

Zappos Recruiter

For an organization that prides itself on the distinctly quirky attitude of their employees, Zappos’ recruitment efforts ensure that, again, that attitude is explicit and unambiguous regardless of the role.

Where to begin?

The journey really does begin with communications. But that requires an organization to acknowledge the undeniable – and inextricable – link between employee experience and customer experience.

Consistency, as in any credible brand building exercise, must be a critical filter.

Are we saying the same thing to all our constituents? Are we communicating consistently to our prospects and prospective employees?

That is how the strongest businesses attract the strongest talent.

That is how the strongest businesses become the strongest brands.

What say you Dear Reader? Am I over-stating the critical requirement for Comms? Weigh in on the comments section below.

Creating A Business Of Impact and Empathy at Shaw Communications

 

Shaw Communications is one of Canada’s largest Telcos. The Calgary-based provider delivers provides telephone, Internet, cable and satellite video and wireless services across Canada and, with their 2016 acquisition of Wind Mobile recently rebranded to Freedom Mobile, has begun to converge their network to offer seamless connectivity in and outside of customers’ homes. Shaw was founded by JR Shaw in 1966 and, to this day, the Shaw family remain active owners and operators of the business with Brad Shaw the current CEO of the organization. 

I had the opportunity to sit down with Jim Little, Shaw’s EVP, Chief Marketing & Culture Officer, Dan Markou, SVP, People & Culture and Manoj Jasra, Director, Digital & Ecommerce to discuss how an organization in one of the toughest competitive business sectors imaginable is able to execute a digital transformation and still nurture a much-admired culture.

HB: Thank you all for sitting down with me today. Judging by your titles alone, you really do cover the key parts of the Digital Transformation agenda at Shaw. Can you tell me a little about yourself and your mandate?

JL: I’ve been CMO at Shaw for about 5 years now. Prior to that I’ve held senior marketing roles within the Financial Services and Aviation sector as well as time within the Omnicom Group. In the last year, our role has expanded considerably to now include responsibility for Culture, as well as Marketing, which is a phenomenal alignment to drive the type of Digital Transformation we’ve undertaken here at Shaw.

DM: I’ve been at Shaw for over 10 years during which time I’ve held a number of senior HR roles across several of our operations and prior to Shaw, worked in different industries including aerospace and consumer packaged goods. Like Jim, my role has also expanded considerably in the last year beyond the traditional domain of HR. It now also includes internal communications and the environmental and physical component of our operations too. As we began creating a world-class employee experience, Jim and I realized that having these aspects of the employee experience within my mandate made tremendous sense.

MJ: I’m a relative newcomer to Shaw having come over from a similar role at Westjet, the Calgary airline, in the past 17 months. My title says digital and ecommerce but the reality is that I’m responsible for creating the optimal customer experience, whether that is sales, service or support. I paraphrase it as being where our customers want and need us to be, rather than forcing them to come to where we are. That means a pretty significant move to new tools, applications and platforms so we can truly deliver that great Shaw experience.

(l-r: Manoj Jasra, Director, Digital & Ecommerce , Dan Markou, SVP, People & Culture and Jim Little, Shaw’s EVP, Chief Marketing & Culture Officer)

HB: I’d love to level-set our readers if I can. Digital Transformation seems a dangerously amorphous term in the business media. How do you define Digital Transformation here at Shaw and how do characterize the objectives and outcomes of a Digital Transformation?

MJ: For Shaw Digital Transformation, at its simplest, really comes down to delivering the most efficient and effective service to our customers we can, using the digital channels and devices that are such a critical part of their lives today.

At the risk of sounding clichéd, it is about rigorously looking at our customer experience and looking at how to make it as efficient as we can. But that means investing in new technologies, new capabilities as well as new talent, new skills, that’s where it gets very very interesting.

DM: That’s the external promise. But it’s the internal changes required to make that a reality where the true Transformation takes place. Everybody says they have no issue with change, until change comes knocking on their door. It’s that requirement to break down silos, to operate and think differently that is the tough part in many ways. Building the internal mechanism of leadership, talent and capabilities is where Shaw is focusing much of our executive attention. The new business models and the new requirements those models have.

JL: Manoj’s point about efficiency and effectiveness is bang on. The ability to use our rich data to create a genuinely personalized experience – for each and every Shaw customer – is the ultimate expression of that. Personalized experiences, which we now have the ability to genuinely deliver, are what wins and retains customers. Just like your favourite restaurant where they know your preferences and your favourite menu items, it is that personalized experience that makes you come back.

HB: I certainly get the requirement of delivering genuine personalized experiences as an objective of a Digital Transformation, but is there more to it at Shaw?

JL: Absolutely. For us we look at the opportunity that lies between two extremes on a spectrum of experiences and transactions. In that way I think we have a very similar POV to companies like Starbucks and others.

Experiences will always be very people-intense and high touch where we try to build that relationship and connection with our customers. And we’ll invest accordingly. Conversely, transactions should be hyper-efficient, cost-effective and, ideally, low touch. If we can get the balance right on those two dials, through our operations, our people and our technology then we believe we’ll win. Getting the balance right is the tricky part.

 HB: That’s a great metaphor. So how is the journey unfolding at Shaw? How are you having to adapt the organization to deliver this?

DM: Actually this is where the Culture part and the new organizational structure has really come to life.

The merging of HR and Marketing reporting up into Jim has had a very profound affect. It really highlights our recognition that, if we’re to deliver on this fantastic customer experience, we have to be equally focused on attracting the right talent and having an equally fantastic employee experience. Customer experience and employee experience are two sides of the same coin.

Being able to achieve that really does need all the skills of Marketing and HR being co-joined in creating a consistent employee and customer experience.

JL: We completely agree. Having been a marketer my entire career but having the opportunity to work through our largest initiatives with Dan as a colleague inside the same team has been amazing.

We are seeing great logic for Marketing and HR, or Culture, being wrapped together because we’ve seen how powerful that combination is first-hand.

This really has been one of the most exciting and fun periods in my entire career.

MJ: I’ve certainly benefitted from this merging of HR and Marketing and its subsequent impact on the amazing story I can tell regarding our Shaw strategy and our new refined Values. Attracting talent to Calgary is a struggle unfortunately, but I’ve certainly seen more candidates, more top-notch talent, be interested in an opportunity at Shaw today. I do credit the efforts of this group to be able to build that story – and for that story to feel genuine to potential candidates.

HB: You’ve all referenced new, or evolved, Values here at Shaw. Can you talk to me about what those Values are and what motivated you to refine or update them?

JL: I would say we’ve always prided ourselves on having a very family-oriented, warm and paternal type culture. Which isn’t that surprising when you consider that our Founder JR Shaw is still very involved in the day-to-day of the organization. Our CEO Brad Shaw is absolutely the same, he is a very people-oriented leader. This has always been a place where we use the term “we” versus “I” because that’s just how JR and Brad are as people and as leaders.

Brad Shaw, CEO

We were great at delivering on empathy, just not as good on measuring individual impact. We’ve now become relentless in determining that balance of “Head” and “Heart”. Where we wouldn’t lose the caring aspects that made Shaw a very special place to work, but ensure that our employees had a very clear and unambiguous sense of what we expected in terms of contribution, of performance and of delivering on the business. That was a key part of the refresh of our Values.

DM: We travelled extensively across the country, interviewed hundreds of employees and asked them what made this organization unique. It took us more than 6 months but worth the time and effort. Why did they stay and why would they encourage people to join Shaw? It was illuminating because it highlighted some real opportunities to refine our Values. Both for the realities of a new millennial workforce but also to ensure that our people understood that contribution is an incredibly critical criteria. In the past we may have equated fairness with sameness, or treating everyone exactly equal, and that’s just not appropriate anymore. It also doesn’t bring out the best in our people, who expect to see a directly correlation between their contribution and their advancement at Shaw.

Jim mentioned that our customer service model is moving toward a highly personalized one. In the same way we’re retooling many of our processes and employee-related systems to be similarly personalized. We’re looking at investments in our employee experience and asking, can this investment deliver the same ROI to the business as an investment in our network or in some of the technology that Manoj keeps asking for (smile).

It’s no longer appropriate for HR to be a cost-center. It is this type of focus on “Head and Heart” that drove a revaluation of our Values and lead to us crafting a new set of Values we believe will move our people and our Culture forward. We are committed to making Shaw the place where the best people choose to work.

JL: A key realization for us has been the critical importance of our “First Leaders” and getting that key group galvanized around the new Values. And acknowledging the importance of their role in propagating those Values. At Shaw, our First Leaders are the Supervisor level and, as you’ve likely seen in countless reports and surveys, they really are where the Culture needs to be nurtured and modeled. People seldom leave because of a poor organization but they often leave because of a poor Boss or Supervisor. We’re paying particular attention to that part of our team because having them as proponents – and examples – of the new Values is paramount.

HB: Fantastic examples. You also have a unique advantage in that your Founder, the living embodiment of your Culture, is still so active in the business. Can you talk to me about the impact of having JR and now Brad here?

JL: It’s true, we’re very fortunate to have our Founder literally come in to the Calgary office whenever he is in town. He and our CEO Brad Shaw are very similar; they are remarkable operators but they’ve not lost that “owner” mentality. A lot of organizations talk about retaining a start-up culture despite their size or success. At Shaw I genuinely feel like that is the case.

JR Shaw, Founder of Shaw & Executive Chair

JR (Founder of Shaw) often says “I never dreamed this big” and I think he sincerely means that. There’s no doubt he’s as driven to succeed today as he was when he started Shaw.

That drive is something we absolutely benefit from. I can say that the Shaw mentality has been to never trade a quarter for a year, or trade a year for five. When we decide to move forward on something, we always take the long-view. That’s unique in my experience, particularly in this sector.

DM: Having been here over 10 years, I’ve seen the family truly exhibit that entrepreneurial drive countless times. They remain as genuinely excited about acquiring new customers today as I imagine they were in 1966 when JR started Shaw. They also have an amazing impact on the Shaw culture as we discussed earlier.

JR, and now Brad, really are the exemplars of our Values and that paternal, empathy we talked about earlier is very much their style and does come directly from how they act, how they interact with everyone at Shaw. We really are very fortunate to have them so active in building the fabric of our culture.

HB: Wow, that is quite remarkable. With all that you’ve gone through in the past 18 months – a re-org, defining a set of new Values, merging Marketing and HR – what lessons have you learnt? What advice do you have for your Digital Transformation peers?

JL: For us, it has been the confirmation that speed is more important than perfection. To put it another way, action modified always beats perfect inaction. That’s a very “digital” concept but, personally, that’s been the biggest realization. “Get it done” has always been a very Shaw attitude, its served us well in the past and, particularly, in the last 18 months.

MJ: For me, the critical lesson is the need for alignment on direction and what success looks like. Particularly when there are so many potential areas to re-tool or new investments you could make. I’ve been amazed at how little “trading” we do when we make a decision here. Historically I’ve seen situations where a decision is made and then everyone starts trading or subtly changing their position. You don’t see that at Shaw. When we align, we align and just get it done as Jim says. That purposeful action is critical for a Digital Transformation in my opinion.

DM: On the Culture part, I’d say I’ve been reminded about how critical consistency is to get people aligned to a change and to get behind it.

That means more than just consistent messaging, the easy part, but the consistency in how we act and behave. Consistent behaviour is always how Cultures are built, or evolved, so being relentless in that consistency has been crucial for us. Particular in this new chapter at Shaw.

JL: All great points, let me just say this has been one of the most intense and difficult periods in my career. But it has also been incredibly rewarding and, more importantly, incredibly fun. That really is classic Shaw.

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This post is part of an ongoing series exploring the intersection of Culture and Digital Transformation – and the challenges organizations face when those two forces meet. This challenge will shape the business agenda for the next decade so we all have a lot to learn. 

If you’d like to share your story, please DM me on Twitter @ZimHilton or reach out via LinkedIn.

Want to find out how Starbucks, Coca-Cola, L’Oreal and other organizations are tackling the intersection of Digital Transformation & Culture? 

Download the rest of the series in a special FREE eBook available here:

Culture & Digital Transformation – Delivering Sweet Success at Nestle Canada

Nestlé is a global CPG behemoth. Straddling categories as diverse as ice cream, pizza, baby food and water, Nestlé owns some of the world’s most iconic brands like Kit Kat, Nespresso, Delissio and Gerber. Over its 150 year history the Swiss-based organization has had to evolve, grow and transform how it operates and how it markets to be successful. Today’s market of Amazon dominance, chat-bots and programmatic are merely the newest challenges for Nestlé marketers to tackle. Over a delicious Nespresso coffee, I had the opportunity to interview Nestlé Canada’s Digital Transformation and eCommerce Leader Lee Beech and ask how the organization is tackling this new raft of challenges.

(Note – this interview happened before Amazon’s acquisition of Whole Foods)

HB: Thanks Lee, delicious coffee by the way. You’re a Nestlé veteran. Tell me about your journey and your current role. 

LB: Yes it’s been almost 17 years working for Nestlé which, in this day and age, might seems unusual. In reality it’s been an ever evolving and changing role that has literally taken me all over the world. I started in the Nestlé UK office looking at how the organization should be tackling websites, moved to Germany then in 2005 came over to Canada. I’ve been incredibly fortunate to have had the opportunity to lead several regional initiatives across the Americas to my latest role which is, quite simply, to establish Nestlé Canada as a digital lead market globally. With an organization that has the scale and complexity of Nestlé there really is never a dull moment. That may explain why I’ve stayed as long as I have. Being tasked to make Nestlé Canada a leader in digital was just too good an opportunity to turn down.

HB: In other interviews I’ve talked about how abstract the phrase “Digital Transformation” is. Each organization has their own perception of the term and what the opportunity really is. What’s Nestlé Canada’s perspective? 

LB: Digital is absolutely changing many of our practices across Nestlé Canada. That’s inevitable as every part of the business is feeling the tide shift to digital. Just look at how our partners like WalMart, Loblaws are changing digitally. At Nestlé Canada we see a real opportunity for marketing to lead the transformation. Our VP of Communication and Marketing Excellence Tracy Cooke has been a very vocal proponent of this. After all, our role in Marketing is to anticipate the needs of both our consumers and customers and increasingly that means a digital solution.

In many ways we’re the tip of the spear which is why our Marketing team has undergone the most sizable change in terms of people, processes and practices. Internally we like to consider ourselves as the “flag bearers of opportunity” which is a great way to look at the important task we’ve been given.

HB: Can you give me some Canadian examples of what those changes have been?

LB: Sure, not surprisingly it’s the people we’ve brought into the organization that I consider the biggest change. We’ve done a number of really fantastic initiatives but none of those would’ve been possible if we hadn’t been able to attract new skills and new thinking into our team. Ex-Mondolez’s Bonin Bough has said repeatedly that he’s actually competing with Google, Adobe for the best talent. As a 150 year-old CPG company we face that very same challenge. We’ve recently started experimenting with running our own programmatic efforts which is new across the Nestlé company. We wouldn’t have been able to do that if we’d not been able to bring new blood into Nestlé – and if our Leadership and our HR partners weren’t willing to think in new ways too. The change has to start with new thinking and that often can be accelerated by bringing in new perspectives. If you’d asked me 5 years ago if we’d have a Digital Merchandiser and a Buy-side Programmatic Manager on staff here, I’d have shaken my head. Today those individuals are key parts of our digital efforts.

HB: Fair point. CPG’s often get hammered for being laggards rather than leaders in Digital. Is that a fair criticism and how is Nestlé Canada addressing that point-of-view?

LB: Access to the last mile has been a traditional issue CPG marketers have had to deal with. In the digital arena that often means the richest data – and most intriguing insights – sit within our partners. Data really is the holy grail that powers many of digital’s biggest opportunities.

At Nestlé Canada we’re definitely looking at new channels, new partnerships and new ideas to get more of that richer data and insight.

Our Nestlé Baby program is a real jewel in terms of a DTC CRM model that we’ve been successfully operating for several years locally. Globally our Nespresso brand has been doing some incredible things too to build a different, and more direct, relationship with our consumers. In recent months we’ve been aggressively trialing efforts with homegrown partners like Shopify and even looking at how we can use distribution channels like UberEats paired with our Delissio pizza brand to learn new things about the Canadian consumer.

Importantly, these aren’t about driving huge revenue but about learning vital lessons that we can bring back into the company. “What else is in their cart?”, “what promotions do they respond to in this environment?” “what patterns are we seeing?” All of these new pieces of information have a ripple effect through the company. They impact which products we consider refreshing or rebranding and make us consider elements like ratings and reviews which are foundational in many digital models.

HB: Working with UberEats and Shopify obviously aren’t initiatives driven from your headquarters in Switzerland. How much latitude are you given locally to drive a uniquely Canadian digital agenda?

LB: We’re given a fair bit of latitude locally but it would be a mistake for us not to leverage the enormous clout and knowledge that exists within the Nestlé ecosystem. Its always about balancing pragmatism – and a legitimate business requirement for effectiveness and efficiency – with local opportunity. Why negotiate with a local software vendor when Vevey (Nestlé’s HW on the banks of Lake Geneva) is looking to implement a similar global solution? However tackling certain initiatives locally –like Shopify and our content creation partnership with Flashstock – gives us the agility to get it out the door faster, learn faster and then make the necessary refinements.

HB: Nestlé is a 150-year old organization which suggests a very embedded culture and way of doing things. How has this digital push been impacted by that reality – and, vice versa, how has the culture had to adapt in order to be successful?

LB: No doubt. Trust is a very important value here at Nestlé. Considering our roots in food products we’ve always been very concerned about earning the trust of our consumers but Trust also means the way we earn and respect the trust of our colleagues too. We’ve absolutely had to become more comfortable with pushing ourselves outside the comfort zones we’ve operated in historically. That takes trust. Risk taking, no matter how you define it, requires high levels of confidence and trust in your colleagues and how they are approaching a problem. We take that very seriously.

That is also partially why we make very sure we’re sharing our initiatives within Nestlé Canada but also across the organization. In many ways its about having an attitude of Transparency and Visibility. If you operate through that lens it can have a profound impact. For example, it can be a real morale booster to see the progress and leadership we’re making but it also gives us a forum to foster conversations and debates with our colleagues. “This is what we’ve done and what we’ve learnt” can be a great means to build openness and trust. I would definitely say that we’ve not always shown or highlighted some of the remarkable work or projects we’re doing worldwide. I do see that changing and Nestlé putting more emphasis on building trust by showing these projects to a broader audience.

In some ways I also look at this notion of “anticipating customer’s needs” as another part of this value of Trust. If we keep focusing our efforts on better understanding what we’re doing well, where we can improve and make meaningful changes, we’ll keep earning our consumer’s trust.

It’s really a bit of a self-fulfilling prophecy if we keep Trust at the core of how we operate.

HB: Working within Nestlé for the time you have must have taught you a number of valuable lessons. What lessons are you comfortable sharing with your peers and colleagues reading this interview?

LB: Some of the lessons I’ve had constantly reinforced are some of the most basic. “Demonstrate quick wins” is a classic but with all the confusion and hype around digital transformation, nothing builds confidence internally than a few quick wins. The other has to be “Don’t boil the ocean.” Again with some many choices and options out there it can be quite easy to succumb to trying to do it all. Don’t. Finally this isn’t a lesson as much as an attitude I suppose. “Be Stubborn About Pushing Forward” – when you’re trying to do something new setbacks are unfortunate and often inevitable but if you’re a little stubborn then you’ll keep moving forward. A bit of stubbornness can actually be a good thing from my experience.

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This post is part of an ongoing series exploring the intersection of Culture and Digital Transformation – and the challenges organizations face when those two forces meet. This challenge will, I believe, shape the business agenda for the next decade so we all have a lot to learn. 

If you’d like to share your story, please DM me on Twitter @ZimHilton or reach out via LinkedIn.

Want to find out how Starbucks, Coca-Cola, L’Oreal and other organizations are tackling the intersection of Digital Transformation & Culture?

Download the rest of the series in a special FREE eBook available here:

 

Ten Culture Fallacies We Need To Stop (Part 1)

 

 How often has the term “culture” been mentioned in your business in the last 72 hours?

How often has Peter Drucker’s “Culture Eats Strategy” meme popped up in your LinkedIn feed?

I‘m willing to bet the answer is “frequently” or maybe even “too bloody often”

Coupled with terms like Digital Transformation, automation, the future of work, the gig economy and change management, culture is a white hot topic that business leaders can fervently debate and discuss but they can no longer dismiss.

Additionally, with an armada of armchair experts opining on the topic, it is amazing how certain perspectives and opinions have also entered the debate.

Some opinions are stated with unambiguous zealotry in channels like LinkedIn. Perhaps more worryingly, the very executives tasked with addressing the culture topic hold some very strong opinions too.

Here are ten that I’ve seen, discussed and debated.

1) You Can Magically Create A “Innovation”, “Entrepreneur”, “Risk” Culture

It has become increasingly popular for organizations to say they need to build an “innovation” culture or a “creativity” culture or some other bright shiny modifier of their culture.

Truth is you already have a culture.

From the moment your organization had more than one employee, it began to nurture a set of shared behaviours – a culture – that defined how you work together.

Ask yourself – Does your current environment allow people to fail fast without negative consequences? Do you embrace challenging new approaches to your business model from within – regardless of the tenure or rank of the source? What is your organization’s genuine attitude to “risk”?

If your answer was “no” to the examples above, then you’re not building an innovation, creative or entrepreneurial culture. It is the behaviours you support, the behaviours you tacitly or unconsciously reward that set the tone.

You might enjoy Rob Shelton’s article in strategy&business where he gives some great examples of the behaviours that do begin to build an innovation culture.

2) You Can Copy A Culture

With all the ink spilt on the hiring practices at Google, the office environment at Apple or the Holocracy experiment at Zappos, it can be enticing to propose that your organization execute the culture playbook of those organizations and similar fame and fortune will inevitably occur.

Wrong.

Culture is a shared experience built from internal adaptation to external circumstances. As such, each of these cultures has been uniquely built from surviving numerous threats to their survival over the years. Each culture has learnt which specific behaviours to keep, which one’s to modify or end, in order to succeed under the very special set of circumstances and market conditions in which they play.

Unless your organization is literally a carbon copy of their market sector, organizational history, leadership attitudes and experience, partner and supplier network, union and employee relationships, and the myriad of other factors that have created those organizations, you’re never going to copy their culture.

At best, look to these cultures for inspiration but build your own playbook.

3) Foosball tables, plaques on the wall and “Beercart Friday’s” Are Your Culture

Most organizations still fall prey to the misperception that their open plan collaboration pods, hot desking or remote working policy, funky new decor and the “people-2-foosball table density” are indicative of their open and transparent culture.

As Tim Kuppler of Culture University so eloquently states it, those are “climate” not Culture.

Renowned culture academic Edgar Schein goes further by describing the three layers of culture – Artifacts, Espoused Values and Basic Assumptions.

In Schein’s opinion, the layer that you can see, feel, hear, touch is the Artifact layer. But that’s not your Culture. That’s not the layer that governs how people in an organization consciously – and unconsciously – make decisions. That layer is the deepest layer, the layer unseen by outsiders and often unrecognized by employees themselves – the Basic Assumptions layer.

If you’re genuinely interested in understanding what drives an organizational culture, you need to look further than the gleaming artifacts you see when you go into an organization. You need to look deeper than the words and values enshrined on the walls or emblazoned on laminated cards. You need to get to the Basic Assumption level – where the forces that drive decision-making and attitudes in an organization reside. That’s the real Culture.

4) Employee Engagement Is An Objective

If you’re a culture practitioner – or just a human being with any degree of empathy – the annual Gallup Employee Engagement Report is a sobering read.

The most depressing stat being the 87% of employees globally who are not engaged in their role. That is a tremendous amount of intellect, energy and passion that isn’t being applied to an organization. Couple the 87% stat with findings that show that highly-engaged workforces outperform their peers by 147% in earnings and the critical importance of employee engagement becomes very stark.

Unfortunately this typically leads to a binary, knee-jerk “raise employee engagement at all costs” mantra.

Employee engagement is an outcome. It is not an objective.

Like the other classic business imperative – profit – it is an outcome from running your organization effectively and efficiently.

If you want to tackle low employee engagement, you need to intimately understand your current culture (which few organizations are prepared to do) and then tackle the issues you uncover. Only then can you begin to create a culture where employees are clear on their roles, clear on how they can contribute, clear on the behaviours the organization rewards. Then, and only then, will engagement improve.

5) Culture is a “Feel Good” Exercise With No Business Impact

Perhaps not an opinion stated openly anymore but there’s certainly skepticism from many executives that investment in culture ever translates directly to business improvement. Considering that culture deals with the messy, irrational, emotional realities of human beings, it perhaps isn’t surprising that some unenlightened folks may see this as a warm and fuzzy feel-good investment.

Consider for a moment if these elements have a direct business impact.

Turnover and Employee retention

Cost of hiring and training

Inter-departmental silos or open conflict

Employee absenteeism

Inability to change (or innovate) to changes in the market

Employees “just do their job” or “show little initiative”

These are symptoms of a culture that is not operating effectively. A culture where the artifacts, values and tacit assumptions (see point 3 above) are out of sync.

Now consider what your organization might look like if the exact inverse of these situations were the norm.

Personally, and this is a view held by many culture experts, I believe that culture is the source of competitive advantage in today’s economy. The ability to have your employees bring their full energy, intellect, passion, curiosity and desire to participate to your organization is the ultimate business impact.

I’ll be publishing the final 5 culture fallacies in another post next week.

Included in that post will be some of my favourite fallacies.

  • Why Peter Drucker’s culture meme should be banned.
  • Culture is HR’s responsibility
  • Culture is only for employees and has no external impact
  • It takes too long to change culture
  • Changing your culture is possible (always a polarizing one)

 

 

Here’s my question – what fallacies do you feel need to be put to bed immediately?

What are some of the culture fallacies or misperceptions you read about – or hear in your organization?

I’d love to get them out in the open and vanquished once and for all.

Leave your thoughts in the comments below Dear Reader.