Building A Culture That Works

Listen to C.A.R. Board Member Tommy Choi’s conversation with Jamie Notter:

 Q: There are a lot of different perceptions of what culture is. To some, it’s a statement, to some it’s having  hoverboards in the office to get from meeting to meeting.  Who’s right?  What exactly is culture?

A: Culture is definitely about “the way we do things here,” which means it includes both the words we use (like cultural statements) and the behaviors of our staff (including hoverboards). But no one piece of that totally defines your culture, and, to be honest, surface-level things like hoverboards or beer taps fail to capture the true depth of culture. In the end, culture is about the words, behaviors, thoughts and tangible things that clarify and reinforce what is valued inside an organization, because that’s what drives behavior.

Q: What is the difference between core values and culture?

A: Core values are distilled statements that attempt to make clear what is valued internally, so they are usually a central part of defining an organization’s culture. In fact, I see a lot of organizations wanting to kind of “check that box” when they start doing culture work. That’s fine, but you have to beware, because determining those core values often has you distilling them to the point of not being that helpful. I have to think that EVERYONE values things like respect, integrity and excellence, so why do we spend three months working on a values statement and end up with those kind of generic values? And on top of that, remember that Enron had some of those same values hanging up in their lobby—but that obviously wasn’t what was really valued there, so it’s complicated. The bottom line is: wherever you work, you’ll learn what kinds of approaches, behaviors and areas of focus are valued by the people in power, and that will drive your behavior. That’s what culture is.

Q: How can you measure the success of a company culture? What is the goal?

A: I’m not sure that culture has a goal, but remember this: every organization has a culture, whether it’s intentional or not. The question is, does your culture actually contribute to the success of the organization? Strong cultures align what is valued with what drives success. Zappos, for example, has a decentralized culture. Their call center employees have a lot of latitude and can make their own decisions on things like giving free shipping or account upgrades. But they don’t choose to be decentralized because it’s cool—they do it because it works for them. They are 100% focused on providing amazing customer service. That’s core to their entire business model. So they create a culture that allows people who are closest to the customer to make their own decisions, because that’s how you make the customer happy. Your culture will be successful when it drives the behaviors that make the organization successful.

Q: Residential real estate is a very entrepreneurial business, in the sense that each individual agent is running their own business. Then, there are also teams that are like small brokerages within brokerages.  What are your thoughts on those teams having a defined culture, separate from even their larger brokerage’s?

A: All culture happens in small groups, and it’s normal for subgroups inside an organization to have cultures that are different from each other. There is a limit to how far that can stray from the overall company culture, but the limit is mostly defined by the impact it has on performance. There may be some groups or departments within Zappos that are more centralized than others, and that’s fine—as long as the centralization doesn’t interfere with the focus on providing amazing customer service.

Q: The chief economist for REALTOR.com® reported that nationally, in 2015, 32% of home sales in the country were all millennials; in Chicago, that statistic was 41%. We also have the largest millennial population in the country.  All that being said, how should brokerages and teams align their culture to appeal to millennial clients and millennial agents?

A: Alignment is the key here. The Millennial generation is shining a light on a new direction that society has been moving towards for some time now. The more we align with this direction, the more successful we will be, and that’s true whether we’re a bunch of Millennials running an organization, or a bunch of Boomers and Xers. Brokerages need to be focusing on strengthening the four capacities we identify in our book, When Millennials Take Over: digital, clear, fluid and fast. Digital is not only about technology, but also about focusing more intently on users, both externally (customers) and internally (employees). Clear means making things visible internally in order to get better decisions out of everyone. Fluid requires adding flexibility to hierarchy so the people with the right information can make decisions, and fast is about learning to build trust and give up control in order to leap-ahead. 

Q: Many brokers work remotely. How do you still build a culture, when your brokers are always on the go and not necessarily in the office?

A: Remember, building culture is about reinforcing what is valued and making sure what is valued is driving your success. For remote workers, there needs to be a focus on communication and sharing information. This may require a more heavy reliance on technology, but the point is to ensure the right people have the right information available to make the decisions that move everyone forward. When you consistently make sure that happens, you’re building your culture. Jamie Notter, co-author, When Millennials Take Over, founding partner, Culture That Works and co-founder, WorkXO

A Discount just for CR Readers!

Use discount code CHICAGO at the Culture That Works store for $7 off When Millennials Take Over. Interested in having Jamie speak? Contact him and mention Chicago Realtor for a discounted speaking rate.