Culture: Convictions versus cliches

Culture is the bedrock of any organization. It brings calm to chaos by creating consistency people can grasp onto. It allows diversity to flourish with shared expectations around communication and behavior.

When you have a strong culture, you are better positioned to manage downturns, competitive threats, and new regulations. Most executives at highly regarded companies say culture contributes at least 30% to their company’s market value. In part, that’s because employees who rate their workplace culture highly are 83% less likely to be looking for a new job, sparing organizations from the costs of high turnover.

Social connections and core values don’t make a culture

Culture tends to shake out in a few different ways. At startups, culture is often based on the founder’s traits. When that person leaves, cracks form and the rules of work change. In other organizations, culture is informally created by employees. It’s tied to social relationships, which can pit people against each other and crumble when influential employees depart.

Some established companies have cultures defined by ambiguous and aspirational words and phrases called “core values.” Core values are usually subjective and focused on what a company should be doing versus what it actually does. They center around abstract concepts like teamwork, customer focus, respect, integrity, innovation, and leadership.

For a culture to take root and function effectively, everyone has to practice it every day. An effective culture is woven into day-to-day ways of working and requires a shift from values to convictions.

Convictions aren’t aspirational. They are firmly held beliefs about how people should collaborate and communicate. They persist over time, resist change, influence how people process information, and guide behavior. They allow people from different backgrounds to collaborate with less miscommunication and conflict.

I founded a data center company in 2011. We locked in on four core convictions in 2012. They remain the same, even as our industry is experiencing massive change and growth stemming from AI and big data. Our culture is a rudder through turbulent times.

Convictions establish a behavioral code that everyone follows

Convictions provide tangible guidance on how work gets done.

One of our convictions is that actions and words are one. Put simply, we do what we say we’re going to do. This influences big decisions, like how our commitments to sustainability become reality, as well as the small ways we work together daily, like setting work deadlines.

Missing deadlines is not uncommon today. Oftentimes, companies approach delivery dates as a moving target, not a commitment. At my company, because our actions and words are one, we’re adamant about setting realistic dates and goals, and following through. That conviction has led to our company organically carving out a desirable reputation among customers.

Another of our convictions is that everyone is responsible for the continuous improvement of people, processes, and systems. We are thoughtful about introducing new tools, processes, or programs. We don’t jump into building a dashboard if we don’t have an established process to maintain and update it. Instead of big unveilings, we focus on incremental improvements. This allows us to grow steadily while reducing wasteful work, anxiety, and friction.

Make sure your convictions start from the top

Companies often define core values by writing them on their website or in an employee handbook. But for culture to be truly sustainable, it must be intrinsic to how people behave every day. That includes leaders and star performers. There are no exceptions.

Unlike the core values in a handbook, convictions are top of mind for everyone, every day. Leaders set the example for employees. If they are constantly reinforcing and referencing your convictions, it sets the foundation for a strong, persistent culture.

Also key is offering every employee the latitude to point out, without consequence, when convictions aren’t being followed. Convictions provide an ego-free basis for questioning a decision or behavior.

As CEO, I encourage employees to point out when I am not living by our convictions, one of which is “Humility In, Pride Out.” I distinctly remember when a colleague pointed out that I was letting pride drive my reaction to a negotiation. He wasn’t wrong. I made a change.

The world is always changing, and some businesses are able to change with it while others are left behind. The data center industry is experiencing major disruption, but we’re not the only ones. Every industry is grappling with how major factors like AI and global supply chain changes will impact how business gets done.

It’s at this moment that we need employees to feel empowered to question everything, try new things, and come up with innovative solutions. If your employees are scared of change, you won’t grow. But if you have a strong, conviction-backed culture, you can give employees the freedom to experiment, fail, and lead through the next era of disruption.

Chris Crosby is CEO of Compass Datacenters.