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Culture as a differentiator for tech SMBs

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Culture is a great way to differentiate for tech SMBs

A great culture is a good thing right? But what is meant by culture, how is it measured and why does it matter?

One thing is for certain, it is more than sponsored walks and cake sales.  So how can SMBs use culture as a differentiator and make Christmas jumper day part of their go to market strategy…

At a recent meeting of IT CEOs, we had an excellent and thought-provoking discussion led by a senior HR strategist.  We talked about the merits of a great culture, how this contributes to higher levels of employee engagement, and the increased discretionary effort this drives.  The benefits for a business are tenfold. Everyone agreed: a great culture makes it easier to attract, retain and get the most out of brilliant people.  But this is only half the story.  Identity comes from culture and is a key differentiator for tech SMBs.

How to define culture

It may be good, it may be bad, but it just is

Culture is like the weather – it is always there whether you like it or not. Competitors may do similar things, but none will match exactly the purpose, ambition, values, and behaviours of another. Many factors contribute and capturing these is the key to harnessing culture as a differentiator.

Four things that indicate a strong culture

1. A shared sense of purpose

Businesses with a clear sense of purpose stand out from the crowd

A clear sense of purpose is attractive to customers, employees, and investors.  Some call this mission and vision. Perhaps better terms would be ‘purpose’ and ‘ambition’. In his much-vaunted Ted Talk, Simon Sinek makes a brilliant case for how powerful messaging starts with the ‘why’.  A ‘why’ statement often leads with a belief.  We believe that the world would be a better place if…

Fulfilling a higher purpose, achieving ambition, and delivering the goal in numbers will be achieved with a clear set of activities.  Getting this on a single page, developing the strategic narrative, and sharing this with new starters, employees, partners and prospects drives a shared sense of purpose and makes a deeper emotional connection with the audience.

Know your ‘why’, publish the strategic narrative and share it internally and externally to foster a shared sense of purpose

2. Shared beliefs and values

A high degree of organisational integrity and authenticity is attractive

A business with a strong culture will be clear on what it believes. In smaller businesses this is driven by the leadership and evidenced in their day-to-day interactions.  This can be a dangerous area. Too many organisations publish bland generic values* cooked up by people who want to seem nice. They mostly aren’t unique, and they certainly don’t differentiate.

Authenticity is essential. Real values are those consistently demonstrated by leaders and managers in the business. These values can take a bit more digging to articulate, but once captured, they will feel right. You can’t fake it, clients or employees who witness behaviour at odds with published values may experience cognitive dissonance, loss of trust and anxiety.  You’ll have a culture, but not necessarily a great one.

Find out what makes your leadership team tick, and how this contributes to success

3. A set of accepted behavioural norms

Culture is about the ‘how’ as well as the ‘why’ and capturing this plays a key role in differentiating

Behaviour is culture. How a business operates, especially when no one is watching, gives great insight into the real values that exist.

It has been said that culture is defined by the worst behaviour that is tolerated in the organisation.  Normalise desired behaviour through competency frameworks, onboarding programmes, development pathways and performance reviews.  If managers start meetings late, are accepting of inappropriate language or tolerate other undesirable traits, that becomes the norm.  Building a great culture means being prepared to ‘off-board’ those that don’t conform.

Talking to new starters and old timers and asking what they think their managers or directors care about and how they operate on a day-to-day basis can be very revealing.  Some of the biggest ‘ah ha’ moments come from understanding what makes a person tick.

Evidence a commitment to great behaviour through published frameworks, guidelines, and policies, and be prepared to enforce them

4. High degree of trust and employee engagement

Emotional drivers generate four times more discretionary effort and positively impact performance

Christmas jumper days, cake sales and socials are great way to foster community and sense of belonging. However, purpose, mastery and empowerment are far more important contributors to employee engagement. For more on this read Drive by Daniel Pink.   Businesses with a great culture empower individuals to make decisions, have employee representation in the running of the business and create an environment where opinions are listened to and respected. Engaged employees work harder, are responsive to new ideas and deliver better outcomes for clients.

The fun stuff is great for building togetherness but make it part of the go to market strategy by choosing community projects, or fund-raising activities aligned with the organisation’s purpose and values.  This will help raise awareness, amplify reach, and reinforce a shared sense of purpose within the business.

Harness involvement with community projects, charities or social activities to tell your story and share your purpose

Culture is perception

Know how you look and sound to people in and outside the business

Whether you like it or not, culture is whatever people think it is. Perception is influenced by many factors including experience, expectations, and cognitive processes. Individuals perceive the same stimulus in different ways depending on their own experiences, and perspectives and perceptions can be influenced by the opinions of others.   If employees or customers think of a business as ‘a safe pair of hands’ or as highly ‘innovative’ it is because their own experience or what they see, coupled with what they have been told leads them to believe this.

It is always valuable to find out how employees view the business and how clients and partners describe it

Say it, become it

Aspirational culture is fine if everyone is pulling in the same direction

If you tell a child they are kind, they tend to behave kindly.  In the same way, employees who believe they work for an organisation that values expertise, achievement, and learning will likely commit to more professional qualifications and delivering a higher standard of work.  But only if they see the evidence of those values. People will mirror the behaviour they see around them.

So, does culture eat strategy for breakfast?

The old Peter Drucker quote may still have some merit.  One could argue that both are equally important.  The best strategies can be undermined by a poor culture but if the culture supports and aligns with the strategic objectives it can be a powerful force for success.  Culture and strategy are not mutually exclusive but rather should complement and reinforce one another.

A great culture is created out of a shared sense of purpose and values, commitment to an accepted set of behaviours, and an empowered energised workforce.  Having these ducks in a row can only be a good thing for a business.  Perhaps ‘building a great culture’ should be part of the strategy.

If you would value  help articulating your ‘why’, capturing the essence of your culture and reworking your unique value proposition. Take a look at our Re:Set or get in touch

 

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