Creating Value

Are you getting the most out of your business?

The term is overused, but I believe corporate culture is important. In particular, understanding how your culture works can help you decide who is a good fit for your company.

When I coach people on hiring, I always start with culture, which I define as what you value, what is important for you and your company. Culture always starts with the owner. In companies where culture is well-defined, it is reflected in every hiring decision. But it can be complicated. I see problems when companies do not pay attention to the traits that make people successful in their companies. Do you want people to work independently, or do you think teamwork and collaboration are more important? Is working lots of hours essential? If you don’t know the answer to these questions, you may have problems.

I recently had a conversation on this topic with Tom Gimbel of the LaSalle Network, which is in the temporary staffing business. The company serves 2,500 companies in the Chicago area and produces more than $30 million in annual sales. Since 2008, LaSalle has been growing at about 20 percent per year. Mr. Gimbel credits much of this growth to a strong culture. When asked what that meant, he talked about creating a humane place to work that is attractive to people in their mid-20s. He told me that his belief system was what was important in the company, and he spent lots of time thinking about how to share that system with those who work with him.

At first, his focus on culture sounded a little loose to me. I asked him what his biggest problem was. He told me that his new employees would often mistake a humane culture for one where it’s all fun and games — as if hard work and results were not important. At a company with significant growth, hard work is always part of the deal. But Mr. Gimbel believes that high growth and being humane can be compatible. His challenge has been how to communicate those separate needs.

Mr. Gimbel’s goals are to reach $100 million in revenue and to go public. To accomplish this, he will have to reinvent his company several times. Running a $35 million private company is very different from running a $100 million public company. It will be easier to hit these targets if the company’s employees share the same basic beliefs about what is important — and that is the mission of his human resources department. Mr. Gimbel calls his H.R. department a human concierge department. Unlike most employers, he expects his H.R. people to help employees not just with the usual stuff but with life problems as well.

Doing this, he said, has earned his company committed employees. He believes that being a good place to work has a real business benefit. His recruitment costs are small, because he has little problem finding people who want to work at his company. Instead of recruiting, his H.R. people spend their time making sure that those who join the company are a good fit.

To attract people who share your belief system, it’s important to have a system. Learn to ask good questions. Learn to ask follow-up questions that allow potential employees to talk. I recommend that you make a list of traits that everyone in your company must possess. In Mr. Gimbel’s case, he might look for employees who are self-starters, who work in a collaborative manner, who have high people skills and are personally responsible.

There is an art in searching for fit. During the interview process, it’s important to give potential employees the opportunity to tell you how they live the traits you’re looking for. You don’t want to ask a direct question like, “Tell me how you’re personally responsible in your life.” Instead, you might ask candidates to talk about a problem they have solved. Precisely how they solved the problem isn’t as important as their attitude about the problem. As they talk, listen carefully. If you can’t figure out whether the person is responsible, ask what prevented the problem from being solved or what solved it. The answers should allow you to hear the candidate either taking responsibility or blaming others. Sometimes it’s subtle, but subtle differences can determine fit.

Potential candidates should have several interviews with different people at different levels in your company. To do this well, though, you have to train your current employees how to do an interview that focuses on listening.

And in the end, no matter what technical skills your candidates possess, you cannot let them join your company if they do not fit in. Technical skills can be taught. I don’t think belief systems can.

Josh Patrick is a founder and principal at Stage 2 Planning Partners, where he works with private business owners on creating personal and business value.

Article source: http://boss.blogs.nytimes.com/2013/05/21/the-real-meaning-of-corporate-culture/?partner=rss&emc=rss