The C-Suite in Shift: Preserving a Culture of Possibility – By Joe Poling

By Joe Poling, President, Think Commercial Services

Recent economic headwinds have many organizations trimming their sails, doing what they must to survive. But at what cost? Why do some businesses barely survive a downturn, while others emerge ready to thrive?

Every successful organization has its own culture: a signature ethos, formed from core principles that underlie its modus operandi, built up by its leaders through decisive action in pursuit of a cohesive vision. In sports, you might call it a team’s style of play.

In business, as in sports, winning depends on having the right people positioned in key roles, executing a carefully created playbook of strategies. Success also requires that the strategies be clearly communicated and informed by team feedback.

This demands honesty across the board. A culture that’s not built on honesty and trust is a façade. In fair weather, the façade will appear to be structurally sound, stalwart, successful. When the wind shifts, the façade crumbles like a sandcastle in a hurricane. The blame game begins. The “we” mentality descends into the “me” syndrome. Business suffers.

So, how do you cultivate and preserve a winning culture – a culture of possibility –when others are in survival mode?

Honesty

Again, honesty is key. Be honest with your team in assessing present problems.

Too often, the C-suite holds its assessment close to the vest, making critical decisions behind closed doors, with limited input, and informing team members after the fact. This shock-to-the-system approach is a mistaken mitigation tactic. The leaders fear that, if the truth gets out, their best performers will start looking elsewhere.

That fear is a vestigeof the long-gone past. In today’s fluid, connected world, top performers are readily aware of their options. Open communication during challenging times may not guarantee staying power, but one thing is certain: any stonewalling, mixed signals, or downright dishonesty from you will provide powerful motivation to leave.

It’s far better to have a strong performance-management objective ingrained in your core culture so team members know where they stand. Top performers will know they’re not likely to be part of a reduction in force, while others will have a chance to improve – or to look elsewhere for a better match for their talents.

Own Your Responsibility

I’m a big believer in using disruption in the markets as an opportunity for change, provided you’re being honest.

In other words, if the economy is the catalyst for right-sizing or making other changes, say so. But don’t use the economy as cover for errors, or to rationalize changes you’re making for other reasons. Such scapegoating inevitably leads to ruin, both ethically and otherwise. Your people are smart; that’s why you wanted them on your team. They will know the truth, one way or another. Informing team insights with accurate information, and acknowledging missteps, provides a foundation for collaborative solutions.

Unfortunately, it’s rare to hear leaders say, “We made a mistake. Our strategy faced challenges that we didn’t plan for,” or “We chose risk-mitigation measures that didn’t work. We accept the responsibility but will have to make some changes.” Instead, they point the finger at the economy or some third party, not seeing their other three fingers pointing back at themselves. Unknowingly, leadership has activated the “me” syndrome, infecting the organization from the top down.

Accepting responsibility, and being a pragmatic part of the solution, is essential to the preservation of culture.

Throw It Back to the Team

In a down market, you have to make changes — reducing staff, cutting expenses. But that life raft will only take you so far. No one’s going to save their way to prosperity.

The shift from bailing out water to sailing full-steam-ahead requires transformation, and the catalyst for transformation is innovation.

A strong corporate culture, based on honesty and trust, pays dividends immediately. I can confidently throw the challenge back to the team, admitting that I can’t do this alone; I never could. Wins and losses – you can rightly mark those down next to my name, but the reality is that this is a team sport. It’s called a business, not a “leadership,” for a reason: everyone has a role to play.

To lead effectively, I have to be able to rely on my team to answer the challenges: How do we procure more business? How do we function more efficiently? How do we increase our margins? How do we increase our clients’ ROI? How do we differentiate ourselves? Step up, speak up, show up with solutions – that’s our mindset.

That’s the culture our organization has nurtured over the last 19 years. We don’t just persevere to survive; we evolve, we thrive – and everyone wins. That’s a culture of possibility, and it keeps us moving forward to a better tomorrow every day.

Joe Poling is President of Think Commercial Services. He can be reached at jpoling@thinkconsulting.com.