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Developing Company Culture
Episode 62nd March 2024 • Gnaw On This... • Ben Baker & Syya Yasotornrat
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"Culture eats strategy for breakfast."

But does it?

Join Ben Baker and Syya Yasotornrat as they #GnawOnThis week's topic: How important is company culture to grow and thrive?

Gnaw on This...Business Bytes is a weekly TUESDAY livestream on topics we encounter everyday. Is it serious? Sometimes? Is it though provoking? Absolutely!

Learn More:

Gnaw On This LinkedIn: https://www.linkedin.com/company/gnaw-on-this-business-bytes-podcast/

Syya’s LinkedIn: https://www.linkedin.com/in/syyayasotornrat/

Syya’s Website: https://brilliantbeammedia.com/

Ben’s LinkedIn: https://www.linkedin.com/in/yourbrandmarketing/

Ben’s Website: https://yourbrandmarketing.com/

#livestream #humanresources #business

Transcripts

0:00

about business and life is that people

0:01

are the X Factor they constantly

0:03

surprise us both in amazing ways and not

0:07

so much we're Ben Andia and welcome to n

0:10

on this business bites podcast this show

0:13

is all about real life things we all

0:15

deal with every day how they relate to

0:18

business and how to make some sense out

0:20

of our daily chaos welcome to the

0:24

[Music]

0:28

show

0:33

and welcome back to another episode of

0:35

non this business bites I'm Ben and this

0:38

is CA and this week I want to talk

0:43

about how to develop organizational

0:47

culture

0:49

culture no two cultures are the

0:52

same no two companies are the same

0:56

trying to be just like Google doesn't

0:59

work

1:00

work trying to be just like Netflix or

1:03

Amazon or even the company down the

1:06

street even if you do the exact same

1:10

thing is not going to work because my

1:14

people who work for my my company are

1:16

going to be different from the people

1:17

that work from your company my customers

1:19

are going to be slightly different from

1:21

your customers my my people are going to

1:23

want need fear and have

1:26

desires different from some other

1:29

company

1:30

we all need to look at culture as

1:34

something that we build individually

1:36

within our organization and it's going

1:38

to evolve over time you're not going to

1:42

build it

1:43

overnight it's not an absolute and it's

1:46

just like a website if you're not

1:49

continually looking at it if you're not

1:51

continually picking at it if you're not

1:54

continually building upon it it's going

1:57

to fall apart and we need to take a look

2:00

at culture that way is that it's

2:02

something that's continually evolving

2:04

something that we're constantly having

2:06

to look at and sit there and say is this

2:09

still relevant does this still work for

2:11

us is this still who we

2:14

are and then be able to do the hard work

2:17

to change things if the answer is no so

2:19

seea let's know on this oh I love this I

2:23

love this topic because it's it applies

2:25

to both small and large organizations so

2:27

I I worked for big companies I worked

2:29

for Disney I worked for hilet

2:31

Packard you can safely say those are

2:33

large organizations but I've also worked

2:35

for a mid- tier you know SMB size

2:38

company I worked for sonic wall which

2:39

had like less than:

2:42

at the time when I was there I work for

2:44

my own company which is less than five

2:46

people right so I think I feel like I've

2:49

got this I've got this topic down

2:51

because I feel it so case in point um

2:56

you reminded me of uh my boyfriend

2:59

worked at this company so I'm going to

3:00

give a shout out to ignite Technologies

3:02

got bought up by sonic wall back in 25

3:04

years ago um it was 25 years ago how

3:08

crazy is that well you were 15 at the

3:10

time so yeah exactly I was 15 so uh the

3:14

thing about their company was uh so

3:16

Sonic well bought them they're reseller

3:18

Partners but they did manage uh security

3:22

and so they wanted that expertise of all

3:24

these Engineers who actually knew how to

3:27

be the Outsource right uh you know

3:29

management

3:30

for security and one thing I loved about

3:33

this group it was only 25 people in that

3:36

company small company but they managed

3:38

some really huge accounts um their

3:41

corporate culture their company culture

3:43

started at the Top If you will it was

3:46

started out by a group of friends and a

3:49

parent investor uh that were

3:52

extraordinary competent people and as

3:54

they

3:55

grew they brought in people that they

3:58

all knew they were all referrals so

4:00

again small company for 25 people it's

4:03

it's you know you should assume at some

4:05

point but they had some out PE out

4:07

Outsiders come in as well and what they

4:11

learned and what I observed was they

4:14

were a bunch of folks who probably

4:16

didn't know HR stuff that you can and

4:19

can't say but that they were learning it

4:21

together and they had the ability to

4:22

give each other Grace to learn and that

4:24

is part of their culture because they

4:26

were also Engineers solving big problems

4:29

they did it together and I think by

4:33

virtue of that job that they were doing

4:35

it just created this like um camaraderie

4:39

uh commiseration together when they're

4:41

like oh no something went down like they

4:43

all jumped in and pitched in to help

4:46

with their expertise uh that as they

4:48

grew even the outside hires kind of

4:51

caught on very quickly this company

4:52

isn't like alone wolf hero situation

4:56

this was all hands on deck when all

4:59

hands on deck needed to be made and I

5:01

loved and I always have loved that uh

5:04

camaraderie that they built up to the

5:05

point where now 25 years later we still

5:07

go meet up we still meet up everyone

5:10

spread out internationally but we will

5:11

meet up in Vegas like you know once a

5:13

year to just to be together again to me

5:15

that is a company culture that you want

5:17

to emulate over and over again and it's

5:20

sometimes difficult to scale that and I

5:22

think it's very difficult to scale that

5:24

and and how do you do that I thought I

5:26

thought hulet Packard actually as they

5:28

grew they really had a great company

5:30

corporate culture for a long time for as

5:33

long as it could sustain itself with the

5:36

economic conditions of Technology it did

5:39

evolve let's be honest it obviously has

5:41

and will always but there was when I

5:44

first joined in:

5:48

n we'll just say some time ago there um

5:52

I felt the familial side of it like I

5:55

actually felt like the different

5:56

divisions there was a lot of desire to

5:58

be there and then I won't say whatever

6:01

reason but let's just say it it stopped

6:03

becoming that it it stopped being that

6:05

because we had to be

6:07

competitive and so let me ask you this

6:10

question now that I'm thinking about

6:11

this and I'm walking through the

6:13

process at what point does company

6:16

culture that you cultivate make your

6:19

company complacent and not

6:22

Innovative you know that that's an

6:24

interesting thing and before I get there

6:26

the question comes down to how are you

6:29

you growing are you growing organically

6:32

or are you going through

6:34

acquisition because when you grow

6:36

through acquisition you become a

6:38

Frankenstein company if you're not

6:40

careful it's very difficult to grow

6:44

through acquisition and not become a

6:46

Frankenstein company it's it's our

6:48

culture versus their culture because

6:50

very few companies on board the new

6:54

employees from the from the

6:56

acquisition effectively because they the

6:59

they'll sit there and they'll give you

7:00

your badge and they'll give you your

7:02

business cards and they'll give you your

7:03

desk and your phone and maybe a

7:06

territory but they don't onboard the

7:09

culture they don't spend the two weeks

7:12

needed to a month depending on where it

7:15

is actually getting people involved with

7:17

the culture and building a buddy system

7:21

between people that have been in the

7:22

culture for a while and people that are

7:24

new to the culture and bu helping them

7:27

build that bridge so that's that is I

7:30

find is a big Challenge and the bigger

7:32

the company gets the harder it gets and

7:35

that can lead to what you were saying

7:38

about companies you know losing their

7:41

Innovation because they you're dealing

7:44

with a variety of different cultures

7:46

that might have been in you know some of

7:48

them might have been Innovative some of

7:49

them might have been more conservative

7:51

some of them think this way some of them

7:53

think that way and therefore the culture

7:57

tends to evolve based upon the people

8:00

that are part of it and and quite

8:02

honestly the leadership if you have if

8:06

you have Innovative leadership if you

8:08

have risk you know risk tolerant

8:10

leaderships that have an ability to sit

8:12

there and say look we're going to change

8:14

we're going to evolve this is the beehag

8:16

we're going after this is the the big

8:18

hairy audacious goal these are the

8:20

things that we're aspiring to this is

8:22

why and this is what's we're going to

8:24

get to when we get

8:25

there then you can build doesn't matter

8:28

how big you are

8:30

the ab you have the ability to be able

8:32

to grow and be able to grow through

8:34

Innovation however most large companies

8:38

the bigger they get the more

8:39

conservative they get because they have

8:41

shareholders they have stakeholders they

8:44

have you know uh stock prices that

8:46

they're they're you know that they have

8:47

to justify every every 60 to 90 days you

8:51

know you have all those different

8:53

factors so as companies get

8:56

larger they lose their risk tolerance

8:59

and therefore they become more

9:00

conservative and therefore their culture

9:02

becomes more conservative you know they

9:04

also have layers upon layers upon layers

9:08

of

9:09

management yeah and therefore the

9:12

bureaucracy builds and as the

9:14

bureaucracy builds you either have a

9:16

small group of people that say Hey

9:18

listen better to ask for forgiveness

9:20

than

9:21

permission and those people are either

9:25

tolerated they're spun out or they're

9:28

given their walk

9:31

papers yeah okay so let's think about

9:35

this I I wonder and you made a big Point

9:39

here if we had the ability to cross

9:41

train like meaning all new hires as part

9:44

of their orientation is to work with a

9:45

different division different group and

9:47

learn their ways U maybe it's not a new

9:49

hire maybe it's like a six months into

9:51

the job thing like you got to learn your

9:53

job first right so maybe it might be

9:56

maybe it might be for the folks that

9:58

have been there a year they get an

9:59

opportunity to cross train you know what

10:01

I've never thought about this before

10:03

because I actually did this when I was

10:04

at Disney we got to cross train um with

10:06

the characters because uh when we first

10:10

uh worked with the Goofy's Kitchen

10:12

concept yes I was one of the OG Pilots

10:14

woohoo anyway yeah I done date myself

10:16

yet again uh but the character

10:20

department they were just like dudes you

10:22

can't be like pulling on me all the time

10:24

to get to your table and your restaurant

10:25

you know like we we have a process we

10:28

have to flow through you can't just be

10:29

yanking us all over the place because it

10:31

screws up the flow it screws up the the

10:33

organization of it right because all the

10:36

characters have to like sped their time

10:37

out right absolutely and uh I appreciate

10:43

that cross trading because I got to see

10:45

I got to live in their

10:47

shoe why do you think we don't see that

10:49

often enough okay that's my ultimate

10:50

questions why do you think we don't see

10:52

is it because we don't got time it's not

10:54

important enough what do you think I

10:56

think we don't make the time and we and

10:58

it's not just Justified and seen as

11:00

expens important enough people sit there

11:03

and say this cost money here's a perfect

11:06

example there's a company just

11:09

preco that I was working with and what

11:12

we were going to do is they had just

11:14

acquired they were 50,000 employee

11:16

company and they were just about to

11:18

acquire an 8,000 person company and they

11:22

were basically acquiring them for their

11:24

technology they they make no bones about

11:26

it they were they're buying them because

11:27

their technology

11:29

I said what's it going to cost you guys

11:31

to on board these people oh there' be

11:33

llions it's going to be about:

11:36

millionar to onboard about $:

11:38

person to onboard these people I said

11:41

okay if you don't onboard them properly

11:44

what we're going to lose now we'll lose

11:46

30% of these people you know easily

11:48

we'll lose 30% of the people I said can

11:51

I say that that's going to cost you you

11:53

know somewhere in the neighborhood of 80

11:55

to $100,000 a a person they said yeah

11:58

that's that's about right so say say

12:01

we're you know we're lose about 2,000

12:03

2,000 people at somewhere in the

12:06

neighborhood of 100,000 80 to 100,000 so

12:08

that's that's six that's $16

12:11

million so you know do we spend $24

12:14

million to save to save $16 million

12:17

that's the question what we proposed

12:19

instead was we created an internal

12:23

private and secure podcast that went out

12:25

to every single employee over three

12:28

years

12:29

and that

12:31

podcast was behind closed doors it was

12:34

stream only it wasn't on its pod Spotify

12:37

it wasn't on iHeart and it was designed

12:41

to build the cultural relationships to

12:43

get everybody to know each other to

12:44

understand why people do what they do

12:47

what do different departments do what's

12:48

important to them how do they how does

12:50

things get passed from one to the other

12:52

and the

12:53

ideology and this was going to cost them

12:56

somewhere in the neighborhood of 10%

12:59

of what it would have cost them to do a

13:01

traditional on board over three years so

13:04

instead of a oneandone it was it was a

13:07

three-year program it was going to cost

13:09

them

13:10

10% and we were all set to go ahead with

13:12

this and then Co came and other

13:14

priorities obviously came the thing but

13:16

the problem is companies don't

13:20

realize what it cost them to not have

13:26

Harmony within the company to to not

13:28

have people understanding why people do

13:31

what they do who the top customers are

13:34

and why what are the what are the pain

13:36

points of the

13:38

customers yeah think of what happened if

13:40

if your operations people understood who

13:43

your top 10 clients were what their pain

13:45

points are what these people did and who

13:47

they

13:48

served do you think that would change

13:51

the way that that that the stuff got

13:53

pick packed and shipped and and and sent

13:55

out and and the level of care and the

13:57

level of attention that God done I think

13:59

it would so we need to take a look at

14:02

say at this is is not just you know a

14:07

singularity but how does it affect how

14:10

does the culture and how does this

14:12

affect the organization as a

14:15

whole you know you just got me thinking

14:17

on that like I'm a huge fan of internal

14:21

podcasts um more so than external facing

14:24

because it's they serve different

14:25

purposes first off right Walmart

14:28

actually has

14:29

an it was originally started as an

14:31

internal podcast that they started

14:32

playing over like like now they call it

14:35

the Walmart radio yep and it's like you

14:37

know hey meet your Regional director and

14:39

all that stuff but you know what you

14:41

also remind me of is like

14:43

that maybe competitive Spirit but there

14:46

was a again a a camaraderie between

14:51

departments when you do you like

14:53

decorate your Christmas tree competition

14:55

you know what I mean and it's like each

14:57

department had their own little thing

14:59

and then everyone would just parade

15:00

around and check each other's out right

15:02

now granted if you're a huge company you

15:04

can still absolutely do it by just doing

15:06

a video competition of your own said you

15:09

know how do you celebrate the holidays

15:10

and

15:11

whatnot it's such a simple Act of just

15:14

giving a moment of reprieve outside of

15:16

your daily task to let your mind wander

15:19

and have some fun that I think I think

15:23

is I think is what's needed to to help

15:27

build that culture of you know I'm not

15:29

saying it's got to be fun times Party

15:31

Times all the time but it's got to be a

15:33

but there ain't nothing wrong with

15:34

having a little fun every now and then

15:36

either right but but a culture and and

15:38

we we should end with this is that a

15:40

culture doesn't always have to be

15:43

Kumbaya no there are cultures out there

15:46

that are hard grinding hard-hitting you

15:50

know business business-only

15:52

cultures and they attract people that

15:55

that's the type of business that they

15:56

want to be in exactly and and there's

15:59

nothing wrong with them if if that if

16:01

you self- select into that culture and

16:03

you sit there and say you know what I'm

16:06

not into this woke stuff I'm not into

16:08

this fairy dust I you know I want to

16:10

work for a company that's serious people

16:12

doing serious things you know to hang

16:15

with political correctness I you know we

16:17

just we just work and we have a lot of

16:19

fun together and you know and we're and

16:22

and everybody works hard and plays hard

16:24

that's a different type of culture 100

16:27

you know what 100% tracks a certain

16:29

level of people so not every culture has

16:32

to be this Kumbaya hold hands and and

16:35

and and go you know go uh you know uh uh

16:39

canoeing together culture there there's

16:41

all sorts of cultures for all sorts of

16:43

companies and what the culture should do

16:46

is not only self- select but self-

16:51

deflect

16:52

interesting I feel like we keep talking

16:54

I know we're running way over time so so

16:57

there we go so we we'll leave it there

16:59

so I'm Ben and I'm seea and we'll see

17:02

you

17:04

soon hey hey hey thanks for listening to

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