A♥️ UGRs: The key to culture management

Culture eats strategy for breakfast. So says an article in the Harvard Business Review. But why does that matter? Well, it matters because culture is important.

Every business has a culture, a set of unspoken values and norms that guide employee behaviour. This culture can be a powerful force for good, driving innovation, productivity, and employee satisfaction. However, a negative culture can have the opposite effect, leading to disengagement, conflict, and high turnover.

Problem or Challenge

Many business leaders struggle to manage culture. It can feel intangible and difficult to control. Traditional methods like mission statements and company values often fail to take root because they don't address the underlying "unwritten rules" that truly dictate how people behave.

Complexity

The challenge lies in identifying these unwritten rules. They're often subconscious, ingrained in daily routines and interactions. New hires might be the first to notice them, feeling the pressure to conform to unspoken expectations.

Solution: Unwritten Ground Rules

Steve Simpson, a culture consultant, offers a practical approach to managing culture. He suggests focusing on the "unwritten ground rules" of the organisation. These are the informal codes of conduct that dictate how employees react in different situations. The behaviours and routines followed by employees that complement, and sometimes contrast with, the official written rules and values statements. They are the "way things are done around here"which effectively make up the company culture. For example, "Around here, when the boss walks in, we pretend we're busy.” If these UGRs are negative and don’t align with the stated values and mission of the organisation, this can inevitably have a detrimental effect on company culture.

Here's a step-by-step approach to implement Simpson's method:

1. Assemble a Project Team: Form a cross-functional group of employees to lead this initiative.

2. Unwritten Ground Rules Workshops: Facilitate workshops where the team identifies the organisation's unwritten ground rules. These can be phrased as "Around here, when X happens, then Y happens." Example: "Around here, when a mistake is made, we cover it up." vs. "Around here, when a mistake is made, we admit it and learn from it."

1. Share and Discuss: Compile the identified ground rules and share them with the senior management team. Discuss the desired cultural direction for the organisation.

2. Agree Desired Ground Rules: Work collaboratively to identify the ideal unwritten ground rules that reflect the company's values.

3. Formalise and Communicate: Document the desired ground rules and communicate them clearly throughout the organisation.

4. Leadership Commitment: This is the most crucial step. Leaders must actively embody the desired behaviours and hold themselves and others accountable for living by these values.

Benefits

By focusing on the unwritten rules, you can create a culture that aligns with your company's goals and values. This leads to a range of benefits:

• Increased Employee Engagement: When employees feel their values are reflected in the company culture, they're more likely to be engaged and motivated.

• Improved Productivity: A positive culture fosters collaboration and innovation, leading to increased productivity.

• Reduced Turnover: A strong culture attracts and retains top talent, reducing costly turnover.

• Enhanced Customer Satisfaction: A positive culture often translates to better customer service, leading to higher satisfaction.

Why it Works

Focusing on unwritten rules works because it addresses the root cause of cultural behaviour. It's not about enforcing policies, but about changing the underlying norms and expectations. Employees are more likely to follow the lead of their leaders, so a committed leadership team is essential for success.

Measurement

Measuring the impact of cultural change can be challenging, but there are several key indicators:

• Employee Engagement Surveys: Track employee sentiment and satisfaction over time.

• Performance Metrics: Monitor productivity, turnover, and customer satisfaction metrics to see if they improve.

• Exit Interviews: Gather feedback from departing employees to understand their reasons for leaving.

My Story, Sources and References

I first learned about UGRs when Steve Simpson spoke for my MD2MD group in Maidenhead.  UGRs are his invention so for more information and real expertise, look him up on LinkedIn and at www.UGRs.net.

Company culture is a powerful asset, but it needs to be managed effectively.

• Identify the unwritten ground rules in your organisation.

• Define the desired culture and formalise your company values.

• Most importantly, lead by example and hold everyone accountable for living the desired culture.

By following these steps, you can create a thriving company culture that drives success.