Culture is everywhereCulture is everywhere. We bump into it all the time, and we do it without even noticing. Culture is the rubbish in the hallway that you walk past. It’s our unwritten rules. It’s “how we do things around here.” You may have heard that Culture is built on the things which you tolerate and not what you say. It’s invisible, but it is very real when you experience it. It’s how we do it around hereUltimately, our real values are uncovered by what we and our people actually do and becomes “how we do it around here”. A good test is consciously to observe: • If you say you value your health, but you do no exercise; is your real value being healthy, or is it something else, which stops you from exercising? A banking disasterWe saw the Australian Royal Commission into Banking a few years ago. The findings were horrendous for some banks. Apparently, it was acceptable to charge fees to people who had died. Apparently, it was acceptable for some banks to lend to people with no income, no assets and no jobs. The banks valued making a profit over other factors, and customers were the ones who suffered. Playing the gameYou may also have heard that what is measured is done. Here the idea is that if people know that their performance will be measured for doing certain things, then they will work out how to do that. If call centres require calls to be answered within three rings, then we might see exactly that, but with a subsequent phase “Can you hold please?” The KPI is met, since the call is answered but the intent of being speedy to help customers fails completely. If you have any biases at all, then they will tend to dominate what you say and do. It’s difficult to not operate that way. It goes against your inner self. • So, if you have a preference for doing things fast, you will. We define and create our own way of doing things. It’s simply because that’s what we are comfortable with. That is why when you go into a new setting and things operate differently there, it can feel a bit uncomfortable. Service is saying “No” at the right time.An example came to me recently. The garage mechanic from earlier has a Vision to be recognised as the best Victorian Automotive Chamber of Commerce (VACC) workshop in the local area. The way he chooses to do this, is to train his team in building technical skills, continually improving problem-solving skills and delivering excellent customer service. Key Values he has shared with the team and incorporated into the way the business works include – honesty, hard work, teamwork and continuous improvement. So, when the VACC made a visit to ask about a particular client who had registered a complaint, the owner was initially concerned. He recalled the client visiting and asking for a road worthiness inspection and certificate. It turns out that the engine was leaking oil, and the flexible engine mounts were nearing the end of their working lives and needed replacing. The vehicle failed the test. Later the client went to another workshop, which also conducted the same standard test, and passed the vehicle to be roadworthy and sold many dollars’ worth of additional replacement parts. The client complained to the VACC that the first mechanic had ripped her off and should have passed the vehicle. Fortunately for our first mechanic, he had photos and reports for why the vehicle failed the test and was able to provide them as evidence. He refused to validate and pass a vehicle which was clearly unroadworthy. The VACC inspector agreed with him and the case was dismissed. This is a good example of how being honest and acting professionally came good for our mechanic. He provided great service, refused to overcharge and stuck to his Values when performing the work. Nice! In business, I would expect the Values of the business leader to closely relate to those of the business, especially if the leader is the founder and owner of the business. A world in turmoilIn 2026, we have seen the world in turmoil. Many countries, organisations and people are trying to achieve multiple, and different goals. And just look at how they are going about their business! Look at the AI company, Anthropic. In 2026, the leader, Dario Amodei, refused to give the USA’s Pentagon, unfettered access to their AI (Claude) capability for two reasons. Firstly, capability which would allow the USA government to establish mass surveillance of Americans, and secondly capability to build and operate lethal autonomous weapons which ran on the AI, but which did not need meaningful human interaction to decide whether or not to attack a target. That decision cost the company at least US$200m and shows that Mr. Amodei values civil liberties and ethical use of AI over the Value of being paid. To learn more about Culture, you can read more within my book “Leadership for Growth”. |
Steve Wood is a management consultant who helps business owners to achieve their own roaring success.
