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organizational culture

Culture interview with CEO of Pear Analytics

by Sheila Margolis on September 16, 2011

I conducted an interview with Ryan Kelly, founder and CEO of Pear Analytics, a web startup in San Antonio, Texas. They build search engine optimization tools and software to help make SEO accessible to everyone. This interview focused on the culture of Pear Analytics—its purpose and core values.

SM. What is the purpose of your company? Why is the work you do important?

Mr. Kelly. The purpose of Pear Analytics is to help organizations compete online. We help companies do a better job of being more visible online. Our work is important because Internet marketing is not as expensive as other forms of marketing. It’s cost effective and trackable; therefore, any size business can do it and benefit from it. Companies that don’t understand online marketing will be left behind and will miss opportunities because many of their competitors are doing it better. Additionally, companies who don’t understand Internet marketing often waste a lot of money because they don’t spend their money wisely. Often, a company can get better results with less money. This is a rewarding business because this work can generate quantifiable improvements.

SM. What are the ideals that drove the founding of your company?

Mr. Kelly.  We want to be transparent and honest in what we’re doing. A lot of companies in this business are not trustworthy. SEO has a bad connotation; there are many scammers in this business because most consumers don’t understand it. Customers often write checks without knowing what they’re getting. At Pear Analytics, we are transparent: we tell customers the steps; we tell them what they get for the price; we give a roadmap. Clients like knowing what’s happening. They understand our end goals.

We communicate; it’s a lot of hand holding up front. With other companies, you buy, for example, 1,000 links for $200 and never talk to a person, or you pay an agency charging huge markups. We’re trying to price our work to be super competitive and still make money.

SM. How is your company different from your competitors?

Mr. Kelly.  We are different because we care if we help companies make money. Many in SEO just care about rankings, but traffic does not drive revenue. We care about conversions; we want the traffic to do something. We give customers pointers on how to improve conversions. We do conversion testing to ensure that clients are spending money on traffic that converts.

SM. How would you describe the personality or character of the company?

Mr. Kelly. It’s fun and flexible here. We have no set hours. We’re focused on getting tasks done. We have a project management system so we know if anyone is lagging. It’s like flexibility on a leash.

Employees have unlimited time off. Everyone works hard–at or over capacity. People often take one to two weeks off at a time. It’s important to work hard and play hard. People need to reenergize. You need balance to be productive.

There’s also flexibility in where you work. You can work from home or at the office—everything is in the Cloud so employees can do work remotely. We use our office for teamwork and collaborative activities, meeting with customers, and training.

We are also flexible in our processes. Employees give input in how we do things. They feel ownership. Employees can directly affect the way the company operates. We change things constantly.

We value decision-​​making and empowerment. I would rather have employees make mistakes and learn. They don’t need to come to me for every question. I’d rather have employees make decisions and make mistakes as long as they learn and are working to make customers happy.

We want to have fun, too. We have a ping-​​pong table and video games in the office. People work hard for two to three hours, and then they play a game. You need a break from looking at a computer screen.

Everyone is from different backgrounds. We train employees from the ground up. We have a lot of Gen Y, first-​​job employees who have recently graduated from college. They like a flexible, fun and empowering workplace.

SM. What are the things about Pear Analytics that should never be changed?

Mr. Kelly. We don’t have meetings. They’re often a waste of time. We have 5–15 minute maximum, morning huddles, often at 10am with Skype. We discuss news, where people are stuck, what’s happening, customer metrics, and where we are with tasks.

Also, everything is open. There are no closed-​​door offices or cubicles. We all sit together.

SM. What values, if followed by all employees, will allow the organization to compete and thrive?

Mr. Kelly.  Integrity, honesty, and transparency–I’ve mentioned them earlier. Those are critical.

We also want to deliver “kick-​​ass” service. We want to be the best at that. We don’t sell what people don’t need or what they’re not ready for. We want to have the right customers—if $500 is all a person had, I wouldn’t take that customer. This work is an investment; it may take time to get the results you want. We set expectations upfront; there’s no crystal ball—only historical data.

We also are building our technology to make jobs easier. We have that Kaizen mentality of continuous improvement. We want to be the most efficient and the least wasteful. We must build scalable and repeatable work. We monitor what gives the best results, and we repeat it. We’ve taken a service model and are making it repeatable. We want to be in the middle–between service and software. We’re trying to invent new and better processes to enhance our technical competencies so its’ easier to do one’s job, and we can save time and can grow the business.

SM. How do you get employees to be on the same page?

Mr. Kelly.  I try to communicate our mission, vision and values with employees. I want our company to be the most well known Internet marketing company in the world.

I also make sure we hire people who are self-​​starters and who don’t need explicit instructions. They just get done what needs to be done.

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Organizational change model: The Five Ps

by Sheila Margolis on July 28, 2011

The Five Ps is a model that depicts a system-​​wide view of an organization. You can use the Five Ps to understand your organizational culture and to use culture to manage change.

The Five Ps

The Five Ps

Once you have defined the central three Ps of the Core Culture, you can bring change by aligning the Internal and External Practices and the Projections with the Core Culture attributes.

Alignment of the Five Ps

Alignment of the Five Ps

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The Building a Culture of Distinction program is a four-​​step process for bringing needed change to an organization. Use this process to guide you in using culture to drive change.

An Organizational Change Model: The Culture of Distinction Program Cycle

The Culture of Distinction Program Cycle

The steps of the organizational change process are as follows:

1. Define the Core Culture of your organization

  •  Define your organization’s central principles—its Purpose and Philosophy—that describe the organization’s contribution to society and distinctive character.
  • Build on that identity-​​​​defining foundation by establishing the strategic Priorities that will enable your organization to compete and thrive.

2. Audit for alignment

  • Audit your Internal and External Practices and Projections to evaluate their alignment with the Core Culture–the Purpose, Philosophy, and Priorities.
  • Calculate your Alignment Index and provide recommendations to improve alignment.

3. Develop a plan to improve alignment

  • Develop a Core Culture Alignment Plan to improve alignment of Practices and Projections with the Core Culture.
  • Set measures to improve alignment.

4. Implement the plan and monitor success

  • Execute the plan to weave the Core Culture principles throughout the organization so everyone lives by the principles that will generate success.

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What is an organizational culture assessment?

by Sheila Margolis on July 25, 2011

An organizational culture assessment is a process for defining and shaping the culture of your company. The outcome is a well-​​defined set of Core Culture principles and values (the vital Purpose, the distinctive Philosophy, and the strategic Priorities) that center the organization and provide the criteria for all employee practices.

If you’ve never conducted an organizational culture assessment, now is the time to consider it. There are several options for conducting a Core Culture Assessment. Choose the option that works best for your organization.

  • Option 1: Conduct a Comprehensive Core Culture Assessment. This comprehensive culture-​​defining process requires the support of a consultant with this specialty. A trained professional has an outside view of the company which is often clearer than the perspective of a company employee. First, collect data (see sample questions) through interviews and open-​​ended surveys and/​or focus groups. Next, triangulate the data with a closed-​​ended survey (based on the analyzed data) for all employees. Then, conduct a facilitated session with the leadership team to review data collection results and decide the Core Culture.
  • Option 2: If you cannot afford an outside consultant, consider using this option. First, conduct a Core Culture Assessment Workshop with the leadership team using the Building a Culture of Distinction workbooks. The facilitator will use the text: Building a Culture of Distinction: Facilitator Guide for Defining Organizational Culture and Managing Change. Participants will use the Participant Workbook. Next, collect views from all employees through a closed-​​ended survey (based on the core culture options that came from conducting the workshop). Then, conduct a follow-​​up facilitated session with the leadership team to review the closed-​​ended survey results and decide the Core Culture.
  • Option 3: This option works well in a relatively small organization where employees will feel comfortable sharing their views openly. First, conduct a Core Culture Assessment Workshop with the leadership team using the Building a Culture of Distinction workbooks. The Facilitator Guide will be used by the leader of the process. Workshop participants will use the Building a Culture of Distinction: Participant Workbook. Then, have an open session with all employees to discuss and alter or confirm results.
  • Option 4: If the organization has fewer than 25 employees, you might consider conducting a Core Culture Assessment Workshop with all employees. The Facilitator Guide will be used by the leader of the process. Workshop participants will use the Building a Culture of Distinction: Participant Workbook.

An organization that has not taken the time to define its core culture principles lacks a clearly-​​defined identity. And with that lack of clarity, the organization will struggle to be successful. It will experience inadequate performance and unattained goals. In successful organizations, employees are united in shared principles.

Take the time to assess your organizational core culture. It will jump start a process for positive change. Contact me for information on the best way to conduct an organizational culture assessment for your organization.

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Use organizational Purpose to unite employees

by Sheila Margolis on June 17, 2011

Purpose: Why is this Work Important?

The Purpose of an organization is the most central component of its culture. The Purpose defines why the organization exists. The Purpose is not the answer to the question “What does the organization do?” That typically focuses on products, services and customers. Instead, the Purpose is the answer to the question, “Why is the work of this company important?” This may sound like a simple question, but in its simplicity, lies tremendous significance for the organization and for each employee.

The Purpose is the cause that defines the contribution an organization makes to society through its work. Of course, businesses exist to make a profit, but they also exist to make a difference. Through their firm’s work, employees can make a difference and be part of a meaningful legacy. When an organization’s Purpose is meaningful to an employee, that person feels a connection to work that is not only rational—it’s also emotional.

Purpose Statement: Be Brief in Length and Broad in Scope

A Purpose statement is a few, crucial words that inspire and motivate employees who care about making that contribution. For example, the Purpose of a bread company might be, to nourish life. And the Purpose of an entertainment company might be, to make people happy. The Purpose statement is brief so employees can remember it and use it to guide their daily actions. Additionally, the Purpose statement is broad in scope to allow the organization to adapt over time to a changing world while keeping a constant, consistent central focus. Products and services often change, but the Purpose endures. Think of your company as a living entity; it is a vehicle for improving individual lives, and the world we live in.

Defining the Purpose: Include Everyone in the Process

When defining your company’s Purpose, be sure to include everyone in the process. Participation in the process builds commitment. Use small group discussions to come up with possible Purpose statements. Then, let everyone respond to a collection of options to see the statement that best conveys the fundamental reason why the company exists.

A Purpose statement does not have to be unique. Other organizations doing similar work may have a similar Purpose. Your Purpose should use words that are meaningful to employees and appropriate for your organization.

Purpose Statement: Screen Using the Six Criteria

Be sure your Purpose Statement meets the six Purpose criteria:

  1. It is a contribution to society—not a product or service.
  2. It answers the question: Why is this work important?
  3. It is inspirational and motivational.
  4. It uses powerful words.
  5. The statement is brief in length so employees will remember it.
  6. The statement is broad in scope to allow for future opportunities and change.

Use this worksheet for evaluating Purpose Statement Options: Organizational Purpose Statement Options To Be Evaluated

A Source of Meaning: Unite Employees with the Purpose

Take the time to unite employees around the organization’s Purpose so that work is more than daily tasks. Work should be viewed as a contribution to society and a source of meaning for each employee.

 

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Merging two organizations is a complex process. And it’s the details that can bog you down. From the way you slice a lemon to the way you serve a drink, each practice must be evaluated to ensure that those with a Delta or a Northwest history will perform similarly. The details are significant because they are not only habit for the employee, but also practices that should reflect the culture.

Evaluating how employees do everything might be excruciating, but it might also be a valuable experience. It’s the details that communicate values and produce a consistent customer experience. Companies should take the time to consider how work is designed and the systems and processes for doing work because if these actions do not reflect and align with the principles and values of the organization’s core culture, then the customer experience might not convey the right message about the company.

So even if your company has not experienced a merger, stop and evaluate what you do in your work each day. Screen those actions against the values that are core to your organization and make changes so that every action consistently produces an experience that supports what your company says is important. It’s the little things that matter–yes, the details can make all the difference. Each Delta employee greeting, each pre-​​flight, in-​​flight and post-​​flight experience should consistently communicate a set of values that differentiate the company and express what’s important. Know the values of your culture and be sure all the little things you do at work reflect, reinforce and align with those prime principles.

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In the Wall Street Journal article “Making 2011 the Year of Great Relationships,” Elizabeth Bernstein states:

Made any New Year’s resolutions yet? Here’s an idea: Focus on the state of your relationships instead of the state of your abs.

Increasingly, experts have been telling us how important social bonds are to well-​​being, affecting everything from how our brains process information to how our bodies respond to stress. People with strong connections to others may live longer. The quality of our relationships is the single biggest predictor of our happiness.

Research also shows that relationships–the social aspect of work–is a key component of building employee engagement. Employees are more connected to their workplace when they work with people who they genuinely care about as individuals. Sincere interest, caring and support by senior management, supervisors, and colleagues nurtures a sense of belonging and community. Relationships can be a powerful motivator.

Is your workplace one where people feel that sense of community? Do you sometimes describe your workplace as a family? As one employee stated: “It feels like family. It’s just a closeness. Here I feel like I am somebody. People know me. We take care of each other. We don’t just discuss work; we talk about life. We have a very caring environment.”

Having positive social connections helps people perform better on the job because they listen to each other and are more open.

As David Rock explains: “When you connect people together, you reduce social threat.” Individuals can be a friend or a foe. Collaboration hits walls when others are seen as foes rather than friends.

Building relationships can reduce silos and contribute to a more collaborative and productive workplace.

Relationships must be strengthened between leaders, managers and supervisors and the employees they lead and manage. The emotional connection between employees and company leaders impacts how employees feel about the company and their job. As people often state: “Engagement flows downhill or it does not flow at all.”

In the Towers Watson 2010 Global Workforce Study, 67% of employees want senior leaders to care about the well-​​being of others, but only 38% feel their senior leaders are caring.

Do leaders and managers know their employees? Are leaders genuinely interested in their employees’ well being? Having empathetic, caring managers who take the time to get to know employees—their strengths, aspirations, how they work best, how they learn, what inspires them and their challenges–promotes a more engaged employee.

As one employee described his relationship with his supervisor: “There’s always somebody you can talk to if you have a problem, whether it be personal or company-​​related. There’s nothing he won’t help.”

Engaged workers have supervisors who genuinely care about them. Think about the supervisors at your workplace:

  • Do they take time to guide employees?
  • Do they remove obstacles to optimize worker performance?
  • Do they provide tools, resources and equipment necessary to do the job?
  • Do they match workers’ individual preferences and strengths with tasks? Do they figure out what everyone does best and find ways for them to shine?
  • Do they inspire workers to do their best work every day?

And relationships must exist between employees. Engaged workers have friends at work. Collaborative relationships—working with people who care about each other and help each other succeed– are the key to business success. Relationships and caring about each other promotes a sense of community and nurtures enjoyment.

Do employees work in teams? Having evolved from hunter-​​gatherer bands, our orientation is to the smaller, more immediate group. In teams, relationships can be nurtured. People are more motivated in highly cohesive teams. Each member’s desire to be a member of the team is much stronger than their desire to leave. The members of a cohesive team each have a personal desire to see the continued existence and success of the team. Because they care about each other, they are willing to put forth extra effort.The younger Gen Y worker is typically comfortable being a team player.

Social connections where people feel others are friends at work creates positive feelings among workers which nurtures dedication and brings out the best in people.

Constructing a thriving workplace culture where employees are connected to their workplace requires understanding that employee engagement is a human endeavor. When employees have relationships and a genuine caring for each other, a company and its employees prosper. So let 2011 be the year of great relationships–not only in your personal life but also in your work-​​life. Quality relationships at work are key to business success.

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Hiring for culture fit–Summary-Part 7

by Sheila Margolis on December 12, 2010

Use your organization’s culture to manage retention. When you hire people who are a fit with the culture, there is a greater likelihood that they will want to stay.

First, you must define your Core Culture:

  • The vital Purpose: the fundamental reason why the organization exists—Why is the work you do important?
  • The distinctive and enduring Philosophy: the prime value or set of values that are the character and personality of the organization.
  • The strategic Priorities: those few values that are essential to all areas of the organization and to the area where the applicant will work that will enable the organization to compete and thrive

Then, be sure your hiring—your recruitment materials, recruitment practices and interview process—is aligned with your Core Culture so that you are effectively screening for culture fit. It is essential to hire people who naturally value the Core Culture attributes that are central to the organization.

Think of culture as your distinctive advantage—as your unique fingerprint.

Herb Kelleher, founder of Southwest Airlines, put it this way, “Everything (in our strategy) our competitors could copy tomorrow. But they can’t copy the culture—and they know it.”

Think of your culture as the basis for your business success. Former IBM Chairman and CEO Louis Gerstner, Jr. stated in Who Says Elephants Can’t Dance?, “Until I came to IBM, I probably would have told you that culture was just one among several important elements in any organization’s makeup and success — along with vision, strategy, marketing, financials, and the like. I came to see, in my time at IBM, that culture isn’t just one aspect of the game; it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.”

To build your culture of distinction, you must define your Core Culture and then hire people who personally connect to the Core Culture, and want to live by it. Use your unique culture to manage retention and drive your organization’s success.

[This post concludes a seven-​​part discussion on Hiring for Culture Fit]

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Do you interview for culture fit? –Part 6

by Sheila Margolis on December 11, 2010

Interview for fit with the Purpose

Are you hiring people who want to make their contribution to society through the work that you do? Are they passionate about the Purpose of your organization? It’s easier to retain employees who are passionate about their organization’s Purpose.

In your interview process, try to discover whether or not your organization’s Purpose is a match for each candidate you interview. Consider asking these questions:

  • What causes matter to you?
  • What issues are you drawn to and personally care about?
  • What do you aspire to do in your life through your work?
  • Why do you want to work in this industry?

Through these questions, discover if the applicant finds your organization’s work a personally meaningful contribution to society. Is this a cause that the applicant really cares about? Is the person a fit with the Purpose of the organization?

Be sure that you include behavioral interview questions. These are questions that ask “How did you…” rather than “How would you….” The goal of a behavioral interview question is to determine if the applicant has exhibited the behaviors you seek—not whether the person can just talk about how they hypothetically would exhibit the behaviors. Behavioral interview questions might also start with the words: “Tell me about a time when…,” or “Give me an example of a time when…,” or “Describe a situation when….” In a behavioral interview question, the applicant will explain a specific situation from a real life experience, their actions and the outcome. You are not looking for hypothetical responses; instead, you want real examples.

Some behavioral interview questions to evaluate whether the Purpose of the organization is meaningful to the applicant:

  • Have you worked in an organization where you felt that the work of the company was meaningful to you? If yes, explain.
  • Describe an event or experience in your life that has driven you to care about the work that we do.

Interview for fit with the Philosophy and Priorities

With an understanding of the organization’s Philosophy and Priorities, create interview questions that evaluate the alignment of an applicant’s values with the organization’s values. Questions to reveal a candidate’s values and fit might be:

  • Describe the kind of work environment you prefer.
  • Have you worked in an organization where the values important at the company were also values important to you? If yes, explain.
  • In what ways do you think you are a fit with the values of our culture?
  • Why do you want to work for us rather than our competitors?

Next, ask questions to determine if the candidate has exhibited in past situations the values of the organization—the Philosophy and Priorities. These behavioral interview questions help discover if the applicant has lived the values of the organization.

Examples of these types of questions, listed by values are as follows:

  • Caring: Would you say you are more or less caring than the average person? Can you give an example?
  • Professionalism: How would you describe professionalism? Describe a situation in the past where you exhibited professionalism in your work.
  • Diversity: Give an example of how you worked to foster diversity in your workplace.
  • Collaboration: Tell me about a time when you collaborated with others outside of your work group.
  • Customer service: Give an example of how you handled an unhappy customer.
  • Safety: Describe a situation when you demonstrated the importance of safety in your job.

Tailor your questions to specific issues that are common to your organization. The more tailored the question is to your culture, the better opportunity you will have to get a response that has not been pre-​​planned by the applicant.

Interview questions should also focus on how the applicant would apply the organization’s values in their future job at the company. For example, if cost control is one of the organization’s values, then you might ask applicants how they would decrease costs in their new job. If collaboration is one of the organization’s values, another question might be: How will you enhance collaboration in your work to make it better than it is today? If the culture values safety, be sure to get applicants’ ideas on how they would incorporate a greater focus on safety in their new job. You want to hire people who can make a contribution to the organization’s culture by offering new and interesting ways to more effectively live the culture each day. An interview question might focus on how the applicant has strengthened the culture of a previous employer.

Give applicants an opportunity to ask questions so they understand the culture and what is valued. Also, observe whether or not the applicant is knowledgeable about the company. Is the applicant only screening the job or is the applicant also screening the organization, as well? Those applicants who have taken the time to understand the organization are better candidates because they are looking for a broader fit.

Interview practices

Onsite visits give an opportunity to observe an applicant’s behavior. For example, at Southwest Airlines, they want to hire people who naturally have that warm, friendly service attitude. During group interviews of flight attendants, applicants give three-​​minute speeches about themselves in front of about 50 people. Managers are watching the audience as closely as the speaker. Candidates who pay attention pass the test; those who seem bored or distracted do not pass. Seeing how recruits interact with people helps them hire individuals who naturally will keep their customers happy. Southwest looks for people with the right “spirit,” and will hire for attitude—their sense of humor and positive attitude—and train for skills.

The hiring process should be a team effort. Those who will be working regularly with the candidate should be included in the interview process. Provide a variety of interview settings—like a breakfast, lunch or dinner—to determine if the applicant demonstrates the values that the organization seeks.

If it can be arranged, set up a way for the candidate to role play the job they would be performing. This opportunity can help the candidate get a real preview of the work and allow the company to assess the applicant.

Once you align your hiring practices with the Core Culture, you are ready to screen applicants for culture fit. Where there is synchrony between the individual and the culture of the company, there will be a greater likelihood that the person will feel connected to the company and want to stay with it.

[For continuation of Hiring for Culture Fit discussion, read the next post on topic: Part 7]

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Are you hiring for culture fit–like Warren Buffett?

by Sheila Margolis on October 27, 2010

In the Wall Street Journal article, “Buffett: Combs Is ‘a 100% Fit’,” culture fit is described as a critical criteria for selecting Buffett’s heir apparent:

Mr. Buffett says he and Mr. Munger (Berkshire Vice Chairman) were sold on Mr. Combs not only because of his ability and intelligence but also because they were convinced he would fit in to Berkshire’s no-​​fuss culture.

Buffett knows that a culture can change when a founder leaves an organization, and this can have a significant impact on the company and its future. Buffett states:

He is a 100% fit for our culture. I can define the culture while I am here, but we want a culture that is so embedded that it doesn’t get tested when the founder of it isn’t around. Todd is perfect in that respect.

So how do you determine if a candidate for a job is a 100% fit?

Companies screen applicants on at least two levels. First, they evaluate the candidate’s fit for the job. When evaluating an applicant for job fit, companies consider these questions:

  • Does this person have the knowledge and skills necessary for this job?
  • What past experiences have prepared the applicant for the job?
  • Do the strengths of the applicant match the requirements for the job?
  • Will this person be sufficiently challenged doing this work?

But more and more organizations are adding a second layer of questioning: to evaluate the candidate’s fit with the culture of the organization. When evaluating an applicant for culture fit, companies think about these questions:

  • Is the work of our organization something that is meaningful to the applicant?
  • Are the applicant’s values in harmony with the values of the organization?
  • Will the person naturally perform in ways that are consistent with how we do things here?

How well a job candidate fits the culture of a workplace can make the difference between job search success and failure. Those candidates selected on the basis of culture fit—in addition to job fit—will contribute faster, perform better and stay longer with the organization. Where culture fit is neglected, the burden is shared by both the employee and the company. Working at a company with values inconsistent with yours can be difficult, stressful and unrewarding. And if the new employee is the heir apparent, then the future of the company is at stake.

Culture fit is important for all potential employees. A person’s values are difficult to change. When you are not a fit with the culture of an organization, that fit cannot easily be altered through training and development. It’s just not the right place for you and not the right life for you to live.

Seeking that 100% fit is important in hiring employees and is essential in picking top leadership. This is why many organizations promote succession planning where internal candidates–who are known entities–are the candidates who get the top positions.

So, if you are a company, be sure you’ve defined your company’s culture–particularly your core culture. Use an organization-​​wide process to define the organization’s Purpose and Philosophy: the central and distinguishing attributes that are the character of the organization and the cause that it has served over the years. You must also know the Priorities of the organization so that you can screen to ensure that candidates naturally practice the values needed to achieve your goals.

By understanding the candidate and an organization’s core culture, you can screen for culture fit. A successful organization hires people who want to live the culture effortlessly.

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Building a Culture of Distinction- Leader Workbook Building a Culture of Distinction- Participant Workbook There Is No Place Like Work: Seven Leadership Insights for Creating a Workplace to Call Home There Is No Place Like Work- Job Seeker Manual