Featured in Offshore magazine
Return to: Articles
Corporate Culture: The People Magnet  

Do you know what the culture of your company is? How do you know?

Offshore enterprises are operating companies. Managers in this industry are by nature primarily concerned with doing things, making things run smoothly and profitably. If they give any thought to corporate culture at all, it is usually influenced by opinions forged from management meeting conversations or casual observations during MBWA (management by walking around). There is a very real likelihood that management's view of a company's culture is markedly different than the way employees see it.

Upper level executives tend to see their companies in a more positive light than do the line level employees. Understandably. They are successful, well-paid, and respected. They can afford to feel good about the company. But the view from the top may be very different from the way it looks down in the yard, on the deck of boat, or on a rig platform.

Employees at lower levels are much closer to the day-to-day realities of what life in a company is really like. They see the company from its underbelly, and what they see isn't always as pretty as top management's view. As a result, their attitude toward the company, their jobs, and your customers can suffer. The corporate culture then suffers. Ultimately, employee satisfaction suffers.

If you really want to know what's on your employees' minds, ask them. Conduct systematic research to find out what they're thinking and feeling.

"Systematic measurement" means repetition over time. A single market research event only provides a snapshot of attitudes and perceptions at one moment in time. By repeating the research at intervals of six months or a year over a period of several years, the data begins to reveal trends and patterns. Conducting ongoing research is especially important with regard to building a culture of loyal employees because the results don't necessarily show up in one quarter. Furthermore, with the continually evolving offshore market, the environment in which one survey is made may be markedly different only a few months later. Sharp changes in oil prices for instance, can change the overall mood quickly.

Research gives management a powerful foundation of fact-based knowledge for decision making to build a strong corporate culture. It provides hard numbers that can be correlated to bottom line performance. Research transforms corporate culture management from a black art into a scientific profit strategy.

Ongoing monitoring need not be expensive. A well-designed survey instrument can be a one-time investment that is reusable over and over. The questionnaire can be self-administered. Ongoing costs are limited to tabulation and trends analysis.

By analyzing the research over time, management can see what parts of a corporate culture development initiative are resonating with the employees and which ones aren't. Though it's no substitute for experience and judgment, research gives managers a realistic basis for making informed decisions rather than educated guesses. Holding a wet finger in the air to judge which way the wind is blowing gives a broadly general idea of the direction. However, scientific data measures not only the precise direction at the moment but the exact speed, range of variance, rate of change, and probable future direction and speed.

While cultures differ widely in the offshore industry, they're more alike than you may think. Employees throughout the industry share common concerns. If you address these concerns effectively, you successfully bond your employees to your company.

Four root concerns appear to plague all corporate cultures to some degree, greater in some than others. They're rooted in basic human nature, the needs and desires we all have. They signify big obstacles to developing a strong unified culture unless you do something to improve them.

These same four challenges appear persistently at the top of the list:

Poor Communication.
The single greatest weakness in virtually every corporate culture we've studied is that employees feel they don't know what's going on most of the time. It's significant that most employees say they rely on the company grapevine to get the real scoop.

The most common form of "communication" in most companies is the memo. It's also probably the worst way to transmit information. Managers tend to feel they have "communicated" because they mentioned something once in Line 4 of Paragraph 6 on Page 3 of a memo last month.

There are two problems with this. First, you can't assume that everybody even reads a memo all the way through (or at all). Second, people are inundated with bits of information in today's world, so much so that little of it actually registers in their memories; there's too much competition.

The first step to improving your connection is to recognize that communication only happens when an idea actually completes the journey from your mind to an employee's mind. A memo is only a delivery device. It doesn't become communication until the employee absorbs and grasps its meaning.

Be creative in the way you deliver information. Try unexpected and surprising ways to communicate. Hang posters in high-traffic employee areas. Make message frames for bathroom mirrors. Make your company newsletter strategic and useful instead of a boring, outdated puff that nobody reads. Use technology where available to you - email, satellite links, videocassettes, and the like.

Repeat yourself. Tell them what you're going to tell them, tell them, then tell them what you told them. For a message to stick, it must be repeated with enough frequency to make an impression that will last. Once is never enough.

Be open. Hush-hush secrecy tells employees you don't trust them. It also divides the Ins from the Outs, splitting the culture. When you take employees into your confidence, you make them partners in your vision, allies in your purpose.

Communication should be a two-way channel. Talk with your employees, not at them. You can't learn anything about the culture with your mouth open and your ears closed.

Poorly-Trained Middle Management.  Next to poor communication, the lack of people management skills among supervisors is the largest contributor to cultural dysfunction. In many companies, middle managers typically get promoted from the rank and file because they have been there longest or have the best functional skills. Neither are qualifications by themselves to be a good manager.

Consequently, people become foremen or supervisors who have neither the temperament nor the training for coping with the challenges of leadership. The fault lies with top management.

Examine your criteria for selecting managers. Make sure you're picking the people who can lead. Make sure they have adequate training for the job. You can't expect someone who was a whiz with a wrench automatically to be a great foreman. More than likely, the person will simply behave with the same bad habits learned from previous supervisors.

As a group, middle managers are more often than not a barrier that blocks your vision from reaching the lower levels of your organization. Your best intentions can't get past the department heads to touch the rank and file if your middle managers are incompetent.

Lack of Respect. The computer world's axiom "garbage in - garbage out" applies to the issue of how employees are treated in your company. You get out of them what you put into them. Respect flows from the very top and trickles down to the line level. The research scores on this issue are always proportional to rank; the lowest level employees feel the least respect. If there is little respect at the top, none gets to the bottom.

When employees feel they are treated with respect, they are more likely to treat each other and customers respectfully. Make it clear to your employees that you value them and the job they do. Live up to your promises to them. Don't con them. They know when you're insincere.

Look at your employees as individuals who each have something to contribute to your success. They aren't just components of the column called "Labor Expense." In truth, respect reduces labor expense. Employees who feel valued are more productive and stay on the job longer, cutting turnover costs.

Favoritism. Perhaps the most insidious of all cultural ills, favoritism breeds organizational incest, rewards brown-nosers, and undermines quality. When you allow cliques to develop in a culture, you lose control of it. Cliques mean fragmentation into factions. Cultural unity is a threat to them.

Promotions, raises, special favors, the best shifts, etc., should be awarded on merit, not on personal relationships. Rewards should be earned based on superior effort, not "who you know." A culture built on quality performance and dedication to the company owns a powerful advantage over a good-ole-boy establishment.

You may be inclined to dismiss these challenges, thinking they don't apply to your company. Think again. Not a single company we've studied - over a range of industries as diverse as marine service, oil and gas, industrial supply, gaming, hospitals and health, and entertainment - was exempt from these problems. It's a good bet that yours is affected, too. It's also a good bet that you don't really know for sure.

Return to: Articles