Corporate Culture: The Only Truly Sustainable Competitive Advantage

Given enough time and money, your competitors can duplicate almost everything you’ve got working for you. They can hire away some of your best people. They can reverse engineer your processes. The only thing they can’t duplicate is your culture.

Hire Away The Best People

Guy bumps into a competitor’s star engineer at a trade event:

“Would you come work for us if we gave you $1 million/year?”

“I would.”

“How about $50,000/year?”

“What do you think I am?

“We’ve already established that. Now we’re negotiating.”

While not everyone is for sale, enough are to make you vulnerable.

Reverse Engineer Processes

Even if you’ve got things patented, trademarked or cloaked in multiple layers of secrecy, your competitors can see what you deliver, what you get done and the core pieces of how you do it. Even if they can’t duplicate what you do exactly, they can get close enough to hurt you – or take it to the next level and render your processes obsolete.

Brave Cultures Are Sustainable

All music is made from the same 12 notes. All culture is made from the same five components: behaviors, relationships, attitudes, values and environment. (Follow this link for more on brave cultures and some ways to put this into practice across interviewing, due diligence, and engaging with the culture.) It’s the way those notes or components are put together that makes things sing.

In sustainable, championship cultures, behaviors (the way we do things here) are inextricably linked to relationships, informed by attitudes, built on a rock-solid base of values, and completely appropriate for the environment in which the organization chooses to operate. As Simon Sinek famously pointed out, most organizations think what – how – why. Great leaders and great organizations start with why (environment and values), then look at how (attitudes and relationships) before getting to what (behaviors).

  • Behaviors: What impact? Implementation.
  • Relationships: How to connect? Communication.
  • Attitude: How to win? Choices.
  • Values: What matters and why? Purpose.
  • Environment: Where to play? Context.

It’s the context that makes it so hard to duplicate a championship culture. Because every organization’s environment is different, matching someone else’s behaviors, relationships, attitudes, and values will not produce the same culture.

Attitude Is The Pivot Point

As you work to evolve your culture, focus on attitudes. There’s a strong case to be made that IBM’s near death experience was a result of a bad attitude. It thought it was the best. It thought its customers needed it more than it needed its customers. It stopped being flexible. The big thing Lou Gerstner did was reversing that attitude. Behaviors and relationships followed.

More recently, we’ve seen the same thing at Hewlett-Packard. It started believing its own myths and lost the congruence between strategy and posture. Meg Whitman can be successful only if she is able to change the organization’s attitude (see my post “Meg Whitman’s Day One Itinerary as CEO of Hewlett-Packard”).

Of course, I am oversimplifying things. Few things are as simple as we hope they are. Of course you have to be in touch with your environment. Of course you have to make sure your values are current. Of course people and communication matter. Of course it’s all theoretical gibberish until someone actually does something that impacts someone else. Attitude is not the only lever. But it’s generally the lever to pull first, using that choice or change to influence the others.

————————————————————-

Click here for an overall executive summary of the New Leader’s Playbook and links to each of its 400+ individual articles on Forbes organized by category.

BEIJING, CHINA - JUNE 23: People visit the 2...

Read More Articles

Why You Should Have More, Not Fewer Meetings | Meeting Effectiveness for Leaders

Meeting effectiveness is not about having fewer meetings. It is about having the right meetings, with the right people, for the right reasons, done in the right way. When leaders…

Read Article
The Artistry in Communication: Where Leadership Comes Alive

Executive communication is often taught as a process of alignment — aligning messages with culture, strategy, operations, and tactical missions. That’s necessary but not sufficient. The artistry lies not in…

Read Article
How Mission Briefs Accelerate Progress by Clarifying Direction, Resources, Authority, and Follow-Through
How Mission Briefs Accelerate Progress by Clarifying Direction, Resources, Authority, and Follow-Through

Teams fail when direction is fuzzy, resources are ambiguous, or authority is blurred. Too often, leaders assign tasks without enough context for teams to make smart, independent decisions. The result?…

Read Article
High Stakes Landmines for Technology Executives

By Jeff Scott with George Bradt High-stakes onboarding landmines are everywhere for new technology executives, but few are as deadly—and as fixable—as a misaligned role. Being the right technology leader…

Read Article
Preparing For The Next Point Of Inflection With Contingency And Capability Plans

The next point of inflection is coming whether you’re ready for it or not. Your success as a leader doesn’t hinge on your ability to predict the future, but on…

Read Article
The Baked Ziti Approach To Making The Implicit Explicit

Sometimes it’s best to hint at things implicitly so others can interpret as they see best. Sometimes it’s best to explain things explicitly so others can follow precise directions. And…

Read Article