Culture Eats Strategy for Breakfast

Some may think a careers page as an afterthought, but, I look at it as an extension of the brand.

As I’m thinking about all the different components to launching a brand, I’m not just thinking about a product, or the packing, or the marketing… I’m all about creating a brand – one that has values, a community, a sense of purpose beyond the products we happen to sell.

Peter Drucker famously said, “Culture eats strategy for breakfast,” and I wholeheartedly believe that. I’ve worked for many companies who don’t care about their culture. They are more profit drive. But this is the wrong way to think about business.

When you don’t focus on culture, and empowering people, or having the right leadership and incentives in place, nipping bad behaviour in the bud, then it can quickly turn toxic.

And a toxic workplace cannot sustain itself. This is when you start to see top talent leave. Those who remain are usually demotivated, discouraged, and miserable. They often just do the bare minimum effort to not get fired, they don’t care about their product or their customers, and they don’t respect their leaders.

Machiavelli talks about two ways to lead – through fear and through respect.

Leading through fear creates a constant stress and anxiety leading to High Turnover and Burnout. It reduces psychological safety, which can stifle creativity and innovation, and it diminishes employee motivation and satisfaction. This ultimately trickles down to the customer experience. And when the customer isn’t happy, that’s bad for business.

So in order to fix that, you need a strong culture.

So for me, a careers page is a way for me to define what kind of company I want to run, put it in writing, and publish it for the world to see. It becomes a beacon to attract the right people who are aligned with those same values. I want to win awards for how awesome my company is managed. I want people to love coming into work and give their best effort. I want to build leaders who inspire and uplift those around them. I want university professors to reference my company in their lectures. That’s the kind of brand and legacy I want to build. If you can do that, then profit will surely follow. It is a byproduct of a strong culture.

Why Leading Through Fear is Bad for Business

Leading through fear can be detrimental for several reasons, as it often has long-term negative impacts on both individuals and the organization. Here’s why:

1. Stifles Creativity and Innovation

Fear creates a culture of risk aversion, where employees are afraid to make mistakes. This discourages experimentation and innovation, which are essential for growth and adapting to market changes.
When people fear punishment or harsh consequences, they tend to stick to safe, conventional approaches rather than proposing new ideas or taking bold actions.

2. Erodes Trust and Engagement

Trust is a cornerstone of effective leadership, and leading through fear undermines this foundation. When employees feel that they are constantly under threat, they are less likely to trust their leaders or feel a sense of loyalty to the organization.
This lack of trust also results in lower engagement, as employees might feel disconnected and unappreciated, leading to decreased productivity and morale.

3. Promotes Short-Term Thinking

A fear-based environment often pressures employees to focus solely on immediate results or avoiding mistakes, rather than considering the long-term vision and strategy of the organization.
This short-term focus can lead to poor decision-making, as employees may prioritize self-preservation over actions that might benefit the company in the long run.

4. High Turnover and Burnout

Constant stress and anxiety resulting from fear-based leadership can lead to burnout. Employees in such environments may feel overwhelmed, undervalued, and exhausted.
This can contribute to higher turnover rates, as people seek healthier work environments. High turnover can be costly for companies, both financially and in terms of lost knowledge and experience.

5. Inhibits Open Communication

Fearful environments discourage open communication and transparency. Employees might withhold critical information, avoid sharing feedback, or remain silent about potential problems to avoid repercussions.
This lack of communication can prevent leaders from getting the honest insights they need to make informed decisions, leading to blind spots and potential crises.

6. Reduces Psychological Safety

Psychological safety is crucial for fostering a culture where people feel comfortable taking risks and expressing their thoughts without fear of backlash. Leading through fear undermines this, creating a sense that even minor mistakes could result in punishment.
Without psychological safety, teams are less likely to collaborate effectively or learn from their mistakes, hampering their growth and development.

7. Diminishes Employee Motivation and Satisfaction

Fear is a poor motivator for sustained effort and performance. While it might drive compliance in the short term, it does not inspire true commitment or passion for the work.
Over time, this can result in lower job satisfaction, as employees feel they are working out of obligation rather than enthusiasm or a genuine connection to the company’s mission.

Conclusion

Leading through fear might appear effective in the short run, as it can create a sense of urgency and compliance. However, the long-term costs, such as diminished trust, creativity, and employee well-being, are significant. Effective leadership should instead focus on creating a positive environment that fosters trust, engagement, and a sense of shared purpose. This helps cultivate a resilient, innovative team that is more likely to drive sustainable success.

Community Building for Brands

How do you make your brand stand out?

The answer lies in the age-old art of storytelling. Just as a perfect ball game keeps fans on the edge of their seats, a well-told story can captivate your audience, create emotional connections, and ultimately drive action.

The following was taken from the book, Three Uses of the Knife: On the Nature and Purpose of Drama, by David Mamet

What do we wish for in the perfect ballgame? Do we wish for our team to take the field and thrash the opposition from the first moment, rolling up a walkover score at the final gun?

No. We wish for a closely fought match that contains many satisfying reversals, but many of which can be seen retroactively to have always tended toward a satisfying and inevitable conclusion.

Continue Reading: The Perfect Ball Game: How We Can Use Drama in our Storytelling Marketing