People-first approach to culture
How many times have we heard CEOs and business leaders say the words ‘people are our greatest asset’? But then, when the chips are down, money comes first with people often ending up low down on the list.
There have been countless surveys into employee engagement and they all indicate that only around a third of UK workers are engaged. That means there are a lot of people who don’t currently feel like they’re being put first.
Isn’t it time we did something about that?
The business case for putting people-first
Studies show that businesses with higher engagement levels have happier customers, are more innovative, generate greater revenue, and higher profit margins. Smart companies know it makes good business sense to focus on people-first. Netflix, Virgin and the online shoe retailer Zappos are three great examples of businesses that have got it right – people and culture are at the heart of everything they do and they’ve experienced huge success because of it. But not all companies are yet following suit.
Here are three things you will see in successful businesses that put people-first:
People and culture over process
Processes are supposed to help businesses improve productivity and grow, but all too often they seem to get in the way. Culture matters, and it isn’t created by forms, policies and processes. It’s brought to life through the inherent values and behaviours that are evident across the company.
Successful businesses that put people-first are clear on the culture they need to create – they know what behaviours and approaches are needed to help drive success. And, as every business is different, what’s appropriate for one company won’t necessarily be for the next.
Netflix says ‘values are what we value’. Their company values (things like curiosity, innovation, courage and passion) are arguably not that different to many other organisations but the key difference at Netflix is that they ‘live and breathe’ throughout the company. It’s less about what’s displayed on the walls and more about the values being actively demonstrated by who gets promoted, rewarded, or even let go.
Too often we see a whole load of policies and procedures that not only do nothing to support the desired culture, but actually undermine the chances of that culture being created and sustained.
2. Leaders create a sense of trust and inspire through vision and culture
Great leaders create a sense of trust which helps employees to feel safe - like they ‘belong’. This type of trust requires leaders to consistently demonstrate common values and behaviours, creating an environment that enhances people’s sense of autonomy, builds their confidence and ensures everyone’s connected to each other and the company’s purpose.
Leaders speak to their employees to get their feedback because they know putting culture and people-first means having consistent, open, two-way communication. They empower their people to be part of the on-going investment in, and development of, the company culture.
Leaders focus on people, not processes, to solve problems. They understand the legal framework that surrounds tricky employee issues such as performance or disciplinary matters, but they aren’t constrained by it. They know how to ‘be human’, and to have honest conversations that help people gain clarity around their situation and feel supported.
Netflix knows their high performance culture isn’t right for everyone so they make sure they’re honest about it right from the start – that way people can make their own decisions about whether the company is right for them.
When leaders build this sense of trust, their people will fight for them and stick around even when the going gets tough.
3. HR approaches are focused on unlocking the potential of everyone in the business
Businesses that put people-first ensure their HR approaches bring their purpose and values to life, and are focused on giving everyone what they need to perform at their best.
Individuals are in control of their own careers and make decisions about their development, supported by their manager and HR. Learning and development is valued across the business, and all activity is in line with culture, not corporate and bland.
Virgin has a decentralised structure which has removed bureaucracy and gives everyone the opportunity to make decisions. They believe in treating staff like ‘smart, capable adults’ and giving them choice to make informed decisions. They know creating this type of environment helps everyone to flourish.
Performance review processes are solely focused on helping people to learn and get better. That means they are disconnected from conversations about money and status because when people are focused solely on getting a pay rise or promotion, they’re unlikely to have a conversation that helps them to improve. The approach is much less about forms and process, and much more about honest, face to face conversations, feedback and coaching.
Putting people-first means helping employees to take charge of their own career, providing opportunities for development, having honest conversations that aid performance improvement and ultimately unlocking the potential of everyone in the business. If you do this you will build a highly motivated and engaged team of people, which in turn equals growth for your business.
Is it time to consider how much more successful your business could be if you spent time defining your culture and actively put people-first in everything that you do?
