I am watching a rerun of “Enron: Smartest Guys in the Room“. Had the Stockholders had transparency into the company, the corporate culture and the legacy of leadership decisions, things would have been different. A sad story of how so many people on the inside knew or sensed much but said little until it was too late.
If you own a business, share your culture, your decisions and your stories with your employees, your clients and your stockholders. If you want a legacy and long term success, this is the only way to go…like any relationship…Trust is Essential.
Steve Jobs announced his resignation and CEO replacement this week. The market flurried on the news, articles and cable segments were plentiful on Job’s revolution of the world, his greatness, his attention to detail, how round two leadership differed from round one and whether Tim Cook could sustain the innovation and therefore the stock profitability. Because of the news, and the market’s speculation of the future, the stock price fluctuated.
While the SEC, the Accounting Standards Board and the public expect greater transparency on the financials, this is a perfect example of where further modernization of transparent data is needed. The data I am talking about is Corporate Culture. What is the real corporate culture of a company? Behind the curtains in the offices, cubicles, conference rooms and break rooms, what do we see and feel if we were employed? Does the executive leadership down to middle managers think about creating unanticipated needs? Do employees each feel their job has meaning, and they are curators for society creating imaginative and innovative items that will simplify people’s lives? Are people rewarded because of not only successes but also the advice/counsel of failures through offering lessons learned? Has leadership not only established its values but live them every day?
We are talking simple yet life altering values that make sense to everyone on the team; the words/phrase that are heartfelt and have a real connection to the team (exclusion of canned/stock words). Corporate Culture includes leadership that shares his/her intelligence and understands its greatest creation is the team that can then imagine, create, care for and give back. The daily belief that teams that works and plays together stays together. Moreover, the practice of creating and sustaining relationships are key both inside and outside the company.
The stock market this week speculated whether the rein of Apple was coming to an end. Sure, they have items in the pipeline so they still have the tail they could ride for a while. The question that writers and business news broadcasters were asking indirectly and some directly…Was Steve Jobs the only creative sustaining genius in the room? Were others mere followers of his vision? I sure hope not. That would mean the weight of the company rested solely on him. Given the depth and breadth of Apple’s presence in the world, that would be awfully herculean of Steve Jobs and would have been an unsustainable tenure. To ask such a question would underestimate the power of team…the Apple team.
Instead, the question the market should be asking is what is the culture of Apple? How deeply ingrained is the culture? How deep is their bench of employees technically, creatively and aesthetically on and off the court? Is Tim Cook the right person to nurture the culture to not only sustain it but also grow it to a better version of itself?
The biggest question of all we should be asking ourselves is why do we not know the answer to these questions? Why have we not broken into the thick steel vault of Corporate Culture? Why do we not include in company and market valuation the corporate culture aspect more directly? We look at current leaders, financials, pipeline, past performance, changes in market conditions, ratios, strategy, etc for valuation. I would propose that these elements are important in valuation; however, corporate culture is the thread that runs through them all. It is hard to measure, because it is enigmatic…hard to define and for many hard to create, grow and transform.
When people figure out Corporate Culture is the only transformative value creator, then valuing a company will come down to those that have a good culture versus those that do not. When looking at good cultures, then it will be which ones do shareholders believe in and more align with their values. After all, shareholders are a part of the team. Their contribution is not time, energy or creativity…they are contributing their hard earned dollars and trust into the team and the culture.
Want to value a company whether as a shareholder, partner or sole owner for buying or selling purposes? Top of mind in your valuation calculation…corporate culture. Companies that develop an amazing culture and then proudly let others know about it, will create, hold and grow more value.
As for Apple, I don’t have firsthand knowledge of their culture but I can think of 356 Billion reasons why we should know in great detail.
Your voice matters and I would love to hear what you think.
Social media is authenticity with a liberating microphone ready to amplify if we use its power for good.
I would encourage leaders to look at the implications of social media more broadly than just marketing and fads. It really is a liberating tool to express the feelings and thoughts we have about people, companies and corporate culture, communities and leaders in broad and sweeping ways. Soon we will freely see people talking about their company culture, the treatment of its people and how closely the company brand aligns with their corporate reality. We can use this contagion as a tool to promote not only what we are but what we aspire to be. I would encourage leaders to be real on who they are, be bold and state what they aspire to be, work every day to create a magnetic culture, own up when mistakes happen and be visionary and create a world of possibilities. Now that is authenticity and authenticity is the source code and content for what appears in social media.
So to the world out there on this microphone I would say…I am a leader in the making…every day growing, learning from lessons and wishing I would hurry up and live up to the image I have of great leadership.
Back in December 2014 I received one of the best gifts I could have ever imagined from my team. They gave me a gift card to KIVA. If you are not familiar with Kiva, it is a non-profit organization with a mission to connect people through lending to alleviate poverty. Kiva does this by leveraging the … Continue reading The More You Give The More You Get – A Life Truth
I have been asked to participate in a panel discussion on Career Advice I wish I had Known Earlier On. I am looking forward to this panel discussion. I will share the results of the session and post my thoughts on the subject after the meeting (it is being held in early March 2015, so stay … Continue reading Career Advice You Wish You Had Received